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Croatian Koncar's unit offers to contribute 310 mln kuna (41.2 mln euro) of Dalekovod's cap hike

Author Annie Tsoneva
Croatian Koncar's unit offers to contribute 310 mln kuna (41.2 mln euro) of Dalekovod's cap hike Mark Rubens/

ZAGREB (Croatia), July 26 (SeeNews) – A unit of Croatian electrical equipment manufacturer Koncar Elektroindustrija [ZSE:KOEI] has placed an offer to subscribe for 31 million new shares from the capital increase of local power transmission equipment maker Dalekovod [ZSE:DLKV], Koncar said.

By subscribing this number of new shares, Koncar's unit Napredna Energetska Rjesenja will contribute 310 million kuna ($48.7 million/41.2 million euro) in cash to Dalekovod's capital increase, Koncar said in a filing with the Zagreb bourse on Friday.

Founders of Zagreb-based Napredna Energetska Rjesenja are Malta-registered Construction Line Limited and Koncar's fully-owned subsidiary Koncar - Ulaganja.

Dalekovod shareholders decided on June 30 to increase the company's share capital from 2.47 million kuna to at least 152.47 million kuna and up to 412.47 million kuna, in order to raise funding to cover debt to creditors under a pre-bankruptcy agreement concluded in January 2014. Earlier this month, Dalekovod opened the subscription for the new share issue, through which the company aims to boost its share capital by at least 150 million kuna and up to 410 million kuna.

The new ordinary shares have been offered to potential investors at their face value of 10 kuna each.

In the first round of the offering, the right to subscribe new shares was granted to existing shareholders on record as of July 16. In the second round, the new shares were offered to all other interested investors. In the third round, the right to subscribe shares was planned to be offered to Construction Line Limited.

Dalekovod said in a separate statement on Monday that demand for shares from the new issue topped the maximum amount planned in the first and second round of subscription.

Shares of Dalekovod traded flat at 0.75 kuna intraday on Monday on the Zagreb bourse, unchanged from their closing price on Friday.

Shares of Koncar traded at 740 kuna, down 0.67% from Friday's closing price.

(1 euro = 7.520 Croatian kuna)