September 6 (SeeNews) - Romanian plastic products maker Teraplast Group [BSE:TRP] said on Wednesday it will ask shareholders to increase the company's planned 2017 investment by 14% to 96 million lei ($25 million/21 million euro).
The proposition will be analyzed at Teraplast's general shareholders meeting on September 21, the company said in a press release.
Teraplast is seeking the hike due to the multiple acquisitions made by the company in the first half of the year.
At the beginning of August, Teraplast Group signed an agreement for the purchase of a further 50% stake in local peer Politub for an undisclosed sum, aiming to become sole owner of the company. Currently, Romania's anti-trust body is looking into the transaction.
In June, Teraplast bought sandwich panels plant Interlemind in Serbia, which is expected to double the panel production capacity of the group, and acquired a further 10% of Romanian roof tiles maker Depaco, boosting its stake in the company to 60%.
At the general meeting in September, shareholders will also have to approve the redemption of maximum 5.15 million of the company's shares with a par value of 0.1 leu each for the implementation of a staff remuneration system. The shares subject to redemption will be paid from the distributable profit or the available funds of the company.
Teraplast's first-half net profit dropped 59% on the year to 7.89 million lei due to stagnation in infrastructure investments and client insolvency. Turnover fell 11% on the year to 171.6 million lei in the six months through June, as sales in the infrastructure field halved compared to the same period last year.
Teraplast shares traded 1.08% lower at 0.46 lei on the Bucharest Stock Exchange by 1157 CET on Wednesday.
(1 euro=4.5985 lei)