Serbian real estate firm Neostar cuts capital

As a result of the move, which was approved by the shareholders on April 4, Neostar's capital will be divided into 94,337 shares with a nominal value of 1,000 dinars each, down from 100,223 shares currently, the company said in a bourse filing on Thursday.

"The company's share capital reduction aims to support its long-term stability, to balance its financing sources and to protect the shareholders' interest," the statement read.

Neostar shareholders also decided that once the capital cut is completed, the company will be able to buy back up to 10% of its equity in the coming two years.

Neostar's shares did not trade on the Belgrade bourse in the past year.

Its largest shareholder is its director general Petar Skokandic with 74.5%, followed by local firm Deco-Invest with 6.1% and Neostar itself with 5.9%, data from Serbia's central registry of securities showed on Friday.

Neostar's main activity is the lease out of own office space in several locations in Serbia's second largest city of Novi Sad, in the northern Vojvodina province.

(1 euro = 117.141 dinars)