September 30 (SeeNews) - Croatian shipping company Jadroplov [ZSE:JDPL] said on Thursday that it has cancelled the capital increase procedure initiated by its previous management in July.
The process of subscription of new shares under the conditions from the public invitation for capital increase has been cancelled, the company said in a filing to the Zagreb bourse.
In mid-July, the company's previous management invited potential investors to subscribe for 2 million new shares with a face value of 10 kuna apiece at a minimum price of 25 kuna ($3.9/3.3 euro). The public call was based on a decision of Jadroplov shareholders from November 11, 2020 to increase the company's capital by issuing new shares with a total par value of up to 40.9 million kuna.
The then management said at the beginning of September that it approved 12 bids and sent counter offers for a price of 26 kuna per share to 11 of the bidders. A total of eight of the bidders accepted the counter bids. However, the company's supervisory board withdrew its initial approval for the capital increase through a new share issue. At the beginning of September, Jadroplov's supervisory board appointed Ivan Pavlovic new CEO with a five-year term.
According to local media reports, the supervisory board considers the terms of a capital increase initiated by the previous management unfavourable in view of a recent increase of cargo fares for shipping companies.
The company's capital of 16.37 million kuna is divided into 1,636,674 shares with a par value of 10 kuna apiece.
The company's shares have not traded by midday on Thursday. They closed at 65 kuna on Wednesday, down 2.26%.
(1 euro = 7.487 Croatian kuna)