October 9 (SeeNews) - Croatian shipping company Jadroplov said it plans to increase its capital via issuing new shares worth up to 40.9 million kuna ($6.0 million/5.5 million euro), which is half the existing share capital.
The proposal will be put to the vote at the regular shareholders' meeting of Jadroplov rscheduled for November 11, the company said in a Zagreb Stock Exchange filing last week.
If the shareholders approve the proposal, the management will be eligible to increase the current 81.8 million kuna capital by up to 40.9 million kuna in one go or in several tranches within a five-year period after the approval is granted.
For some time now, Jadroplov has been undergoing restructuring approved by the Croatian government and the European Commission, which includes plans for the privatisation of the company, it said.
Via the planned capital hike Jadroplov hopes to find a strategic partner that would help improve its competitiveness on international markets by resolving losses, restructuring overdue debts and investing in assets needed for continuing the shipping company's business.
Jadroplov has said its consolidated net loss widened to 34.7 million kuna in the first half of 2019, from 19.8 million kuna a year earlier, as revenue dropped, while costs increased.
At the end of June, Jadroplov's fleet had six vessels of total 292,939 DWT and average age of 13.5 years.
The Croatian government controls a 63.6% stake in Split-based Jadroplov through the centre for enterprise restructuring and privatisation, CERP. The Croatian Pension Insurance Institute, HZMO, owns a 6.8% stake, also through CERP, while the remainder belongs to smaller shareholders.
Jadroplov's shares traded 11.2% higher at 12.9 kuna by 0850 CET on Wednesday.
(1 euro = 7.41843 kuna)