Elektrim is planning massive zl. 2 billion share issue

Telecom and energy conglomerate Elektrim S.A. is planning a massive offering of up to 45 million shares. urrently its equity consists 83.6 million shares. The company says half of the new shares would be issued abroad as Global Depositary Receipts (GDRs) and proceeds from the issue would be used to finance its investment projects. "The company has given no details of how it plans to use the money, so for now we can only analyze the size of the offering. And this sends a negative signal to investors, as Elektrim's capital will be greatly diluted," said BGZ brokerage house analyst Flawiusz Pawluk. "We expect proceeds from the issue to reach between zl. 2 billion and zl. 2.5 billion," said Elektrim's vice-president Jacek Walczykowski. Current Elektrim shareholders will not have rights to the new share issue, meaning that it could be directed to selected investors. One of these investors could be the French company Vivendi, which cooperates with Elektrim in mobile telecom ventures. Elektrim's shareholders will vote on the issue at a meeting on June 30. (Gazeta Wyborcza, page 28, Prawo i Gospodarka, page 1) T.J.