Dalekovod Receives One Offer for the Participation in the Company’s Restructuring

Last Week, Dalekovod released an invitation to a GSM in which the company proposes a reverse stock split at a ratio of 100:1 followed by a joint cap hike by Koncar and Construction Line in the amount between HRK 150m and HRK 410m. The proposals are part of a plan to financially restructure the company.

After issuing an invitation for interested parties to participate in the financial restructuring of the company back in February, Dalekovod finally released the results of the invitation. According to the statement released on the ZSE, Dalekovod received only one offer and that in the form of a joint deal by Koncar 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 investor, leading to a -59.1% price decrease during Friday’s session, ending at HRK 2.37 per share.

The GSM will be held June 30th, in order to read the full invitation please click here

Category : Flash News

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