August 21 (SeeNews) - Bulgarian brokerage Euro-Finance, a unit of financial and insurance group Eurohold Bulgaria [BUL:4EH], said that it is planning to lower its registered capital by some 25.9 million levs ($14.7 million/13.2 million euro) to 14.1 million levs by repurchasing and cancelling some of its outstanding shares.
The reason for the capital cut is the fact that the company is overcapitalised, which leads to lower return on equity, Euro-Finance said in a commercial register filing on Tuesday.
The capital decrease is subject to approval by the Financial Supervision Commission.
In 2018, Euro-Finance posted a return on equity ratio of 0.04%, up from 0.01% the year before, according to data from its annual financial statement. Euro-Finance's net profit rose to 834,000 levs last year from 209,000 levs in 2017.
(1 euro = 1.95583 levs)