Elektrim announces share issue slated for this year

Jacek Walczykowski, deputy chief executive of Warsaw-based telecoms and energy group Elektrim, said his company plans to issue new shares later this year to finance its expansion in the domestic telecoms sector. He declined to provide further details, but said more information would be available by mid-March. Last year the management of Elektrim, which now has roughly 83.8 million shares outstanding, failed to convince shareholders to substantially raise its capital. In June 2000 the firm's shareholders approved a mere 3.1 million issue, much lower than management's proposed 25.2 million shares. Elektrim has said it intends to invest heftily in new economy ventures. "We know Elektrim is preparing to convert bonds worth euro 500 million in June at zl. 64 apiece, and it's not very likely that the company would decide to issue new shares for less than that," said Stefan Knopik from DM BPH. After the announcement, Elektrim shares dropped 1.0% to zl.47.5 in late Thursday trade, closing at zl.47 a share. (Reuters, Gazeta Wyborcza, p.26) M.M.