Dalekovod Plunges by Another 33.3%

The share price closed at HRK 1.58 per share, decreasing by 73% in two trading days.

Dalekovod’s share price dropped by as much as 33.3% yesterday, closing at HRK 1.58 per share. The current share price also represents a drop of 73% compared to Thursday’s share price, when DLKV closed at HRK 5.80 per share. DLKV was the most traded share on ZSE yesterday, with a turnover of HRK 1.25m.

As a reminder, after issuing an invitation for interested parties to participate in the financial restructuring of the company back in February, Dalekovod released the results of the invitation on Friday. According to the statement released on the ZSE, Dalekovod received only one offer and that in the form of a joint deal by Končar and Construction Line. The offer includes a cap hike ranging between HRK 150m and 410m by subscribing shares in three rounds, by cash payments, and/or contributions by entering rights (claims). 

As part of the deal, Dalekovod would first reduce their share capital from HRK 247.2m to HRK 2.5m in order to cover losses from previous periods. At this point the company would also perform a reverse stock split by consolidating every 100 shares into 1. Since the issuance of new shares will follow the stock split and since new shares will be issued at the nominal value of HRK 10 per share, the value of the cap hike basically amounts to HRK 0.10 per share at the moment. This of course did not resonate well with current investors, as visible from the share price drop.

Category : Flash News

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