August 18 (SeeNews) - Croatian power transmission equipment manufacturer Dalekovod [ZSE:DLKV] said its minority shareholders initiated two separate lawsuits, both challenging all of the decisions taken at the company's annual shareholders' meeting on June 30.
Dalekovod received on August 17 two decisions by the Commercial court in Zagreb, in which it was informed that a group of its minority shareholders filed one of the lawsuits, the company said in a filing to the Zagreb bourse on Tuesday.
Another minority investor, individual Sasa Spasic, filed the second lawsuit. The court has not set a date for hearing, Dalekovod said.
On June 30, the shareholders of the company approved a proposal for its financial restructuring made in May by local electrical equipment manufacturer Koncar Elektroindustrija [ZSE:KOEI] and Maltese company Construction Line Ltd.
The proposal envisaged to cut Dalekovod's share capital to 2.5 million kuna ($391,000/333,600 euro) from 247.2 million kuna to cover earlier losses, only to further increase it to up to 412.5 million kuna in order to raise funding to cover the company's debts to creditors under a pre-bankruptcy settlement agreement concluded in January 2014.
The shareholders' meeting approved the proposal, under which the capital increase was supposed to be carried out by share subscriptions in three rounds, cash payments and/or contributions by entering rights.
However, as a result of the the initial capital cut approved by the meeting, the company made a reverse stock split in July by consolidating every 100 shares into 1, and later on the same month offered to potential investors in a public offering new ordinary shares at their face value of 10 kuna each.
In late July Koncar said its unit Napredna Energetska Rjesenja will contribute 310 million kuna in cash to Dalekovod's capital increase. Founders of Zagreb-based Napredna Energetska Rjesenja are Construction Line and Koncar's fully-owned subsidiary Koncar Ulaganja. Back then, Dalekovod said separately that demand for shares from the new issue topped the maximum amount planned in the first and second round of subscription.
“The value of the cap hike basically amounts to 0.10 kuna per share. This of course did not resonate well with current investors whose stake in the company would be reduced to a low single digit percentage,” Intercapital brokerage firm explained in a note to investors on Wednesday.
Dalekovod's shares did not trade on the Zagreb bourse on Wednesday. They last traded on Tuesday morning at a price of 84 kuna, unchanged from the previous closing price, and the bourse placed them in a segment for monitoring following the news about the lawsuits.
Koncar's shares traded 0.67% lower at 745 kuna on Wednesday afternoon.
(1 euro= 7.494 Croatian kuna)