September 17 (SeeNews) - Romanian plastic products manufacturer TeraPlast Group [BSE:TRP] plans to increase its share capital by 21.3 million lei ($5.4 million/ 5.0 million euro) to a maximum of 107.1 million lei in December, it said.
The increase will be made by incorporating the reserves from the net profit of the previous years, and by issuing of 213,334,832 new shares with a reference value of 0.10 lei/share, TeraPlast said in a filing to the Bucharest Stock Exchange, BVB, on Friday.
"The capital increase is made in order to support the current activity of the company. Every shareholder registered in the Shareholders’ Registry at the registration date shall receive 1 new share for every 4 shares owned," the company said.
The board of directors will make the capital hike effective as of December 19.
Earlier this month, TeraPlast said it has asked the government to provide grant funding for three investment projects worth a total of 15 million euro ($17.5 million). The projects would be implemented under the Government Grant Scheme that stimulates investments with a major impact on the economy.
TeraPlast's first-half net profit rose by 33% on the year to 10.52 million lei, mainly due to the acquisition of new businesses in 2017.
In January, TeraPlast took control of local roof tiles producer Depaco by increasing its stake in the company to 67% and said it targeted 100% ownership. In October last year, TeraPlast opened its TeraSteel sandwich panels factory in Serbia, and received the approval of Romania's anti-trust regulator for the takeover of plastic products manufacturer Politub..
TeraPlast shares traded 1.39% higher at 0.3650 lei on the BVB as of 1039 CET on Monday.
(1 euro=4.6430 lei)