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Croatia's Losinjska Plovidba cuts share capital by 46% to cover loss

Author Iskra Pavlova
Croatia's Losinjska Plovidba cuts share capital by 46% to cover loss Croatia's Losinj island. Photo: Grad Mali Losinj

ZAGREB (Croatia), January 17 (SeeNews) - Croatian water transport company Losinjska Plovidba [ZSE:LPLH-R-A] said on Friday it will cut its share capital to 126 million kuna ($19 million/17 million euro) from 232 million kuna in order to cover loss from previous years.

The decision was approved at a January 17 extraordinary shareholder meeting, Losinjska Plovidba said in a filing with the Zagreb bourse.

The capital cut will be carried out via reducing the nominal value of each Losinjska Plovidba share to 190 kuna from 350 kuna. The company's capital is divided into 662,416 shares whose number will remain unchanged.

Losinjska's total accumulated loss stood at 124 million kuna at the end of 2019, the statement said.

The company will use 31 million kuna worth of reserves and retained earnings towards covering the loss, which will be reduced to 93 million kuna.

This amount will be then covered by the 106 million kuna released from the capital cut, with the remaining 13 million kuna going to capital reserves and legal reserves.

Croatian shipyard Dalmont is the largest single shareholder in Losinjska Plovidba with a 24.5% stake, followed by businesswoman Myrian Masa with 24.3% and local businessman Nenad Bakic with 7.9%, bourse data showed on January 17. The remainder belongs to smaller shareholders, with the Croatian government controlling a 2.25% stake.

Losinjska's shares rose 10.69% to close at 145 kuna on the Zagreb bourse on Thursday. They did not trade by 12:20 CET on Friday.

(1 euro = 7.43829 kuna)