Bulgaria's Konstantin i Elena Holding launches capital hike

Konstantin i Elena is offering for subscription 1 million new voting shares of 1 lev in par value each, priced at 22 levs apiece, CCB said in a statement published on its website.

Current investors and those who purchase existing shares within five business days of publishing the capital increase notice will receive rights to subscribe for new shares, with each right corresponding to some 0.433 new shares. Shareholders will be able to subscribe for the new shares between March 27 and April 23.

The capital hike will be considered successful if no fewer than 500,000 new shares are subscribed and paid for.

Konstantin i Elena stands to make some 21.96 million levs in net proceeds if all shares are subscribed. Of those, 1 million levs will go towards designing a hotel complex, while 19.8 million levs will be used to repay debts and 1.16 million levs will serve as a financial buffer.

Shares in Konstantin i Elena last traded on March 6 when they closed at 21.80 levs on the Bulgarian Stock Exchange, bourse data show.

(1 euro = 1.95583 levs)