Dalekovod Reduced and Then Increased Its Share Capital

Shareholders of Dalekovod made decisions at yesterday’s general assembly regarding a simplified reduction of share capital to cover accumulated losses, as well as a decision to increase share capital.

This is stated in a brief announcement from Dalekovod, which today reported on the Zagreb Stock Exchange that ‘all decisions proposed in the invitation were voted on at the assembly.’ Shareholders also decided on the simplified reduction of share capital to cover accumulated losses by reducing the nominal amount of shares from one hundred to ten kuna.

According to this decision, the company’s share capital would be reduced by 258 million kuna, from 286.7 million to 28.67 million kuna, to cover part of the carried-over loss from last year, amounting to 197.3 million kuna. Dalekovod’s total loss last year amounted to 441.2 million kuna, with a larger portion, around 244 million kuna, to be covered by reserves from profits earned in previous years.

Upon accepting the reduction of share capital, shareholders also decided at the assembly to increase it by issuing new ordinary shares, contributions in cash, and rights. Based on this decision, in the recapitalization of Dalekovod, the company Konsolidator, owned by Nexus Private Equity Partners, would participate with 150 million kuna, in accordance with the binding offer for recapitalization submitted by that company in mid-May.

This recapitalization would be carried out by issuing 15 million new shares with a nominal value of 10 kuna. By issuing an additional 921,604 new shares, a number of creditors in pre-bankruptcy settlement would also enter into the ownership of Dalekovod by contributing rights and claims totaling 9.2 million kuna. Additionally, the assembly granted the Management Board approval to increase share capital with cash contributions up to 60 million kuna by issuing new shares within five years.

According to the announcement that the assembly voted on all proposed decisions from the invitation, it follows that the former head of Dalekovod, Luka Miličić, who was the CEO of Dalekovod until September 30 of last year, did not receive discharge, i.e., his work was not approved.