KORADO-Bulgaria AD targets a capital increase of BGN 7.9 m through a new share issue on the Bulgarian Stock Exchange
Korado-Bulgaria AD, a leading Bulgarian producer of steel radiators, plans to increase its capital by issuing new shares for a total of BGN 7.9 m.
The next General Meeting of Shareholders is scheduled for 11th of June, 2014 and will address the approval of the issuance of new 2 884 786 ordinary shares with voting rights. The shares, each with a nominal value of BGN 1.00, will be set at BGN 2.75 per share. Raiffeisenbank (Bulgaria) EAD is the nominated investment intermediary for the transaction.
The capital increase aims to support further production capacity expansion and enlargement of the product range of the Korado factory in Strazhitsa.
The med-term investment program of Korado-Bulgaria AD includes a second welding line (currently being installed), and introduction of a new solder furnace for the production of bathroom radiators and a new paint-shop.
Factors that support the management decision to raise new capital:
- Korado-Bulgaria AD has a profile of a high-quality, low-cost manufacturer steered by the experience and innovation of Korado Group;
- The company has a strategic geographic proximity to the markets in Eastern Europe, Turkey and North Africa;
- Korado-Bulgaria AD has been able to deliver strong financial results over the last four years.
Korado-Bulgaria AD is part of the Czech Korado Group which is among the top five producers of steel panel radiators in Europe. More than 60% of the shares of the mother-company are owned by the Czech government and EBRD. Korado- Bulgaria AD is the only production site of the Group located outside the Czech Republic. The structure of Korado Group includes 3 factories in total – two in the Czech Republic and one in Bulgaria, and 4 trade companies, situated in Poland, Germany, the United Kingdom and Austria.
The management of Korado Group and the management of Korado-Bulgaria AD will be pleased to answer investor questions regarding the capital increase on a press conference, scheduled for 18th of June, 2014, from 11:00 a.m. till 13:00 p.m. which will take place in Triaditza 2 Hall at Grand Hotel Sofia, address: 1stt Gurko Str., Sofia, Bulgaria.
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