Elektrim to reduce number of new shares issued because of equity dilution fears

Telecom and energy conglomerate Elektrim said yesterday it would issue up to 25.2 million shares this year, backing down from earlier plans to sell as many as 45 million new shares. The company currently has 83.6 million shares outstanding and the announcement of plans to increase its capital by more than 50% sparked criticism from investors, who feared too great a dilution of equity. "We have taken this decision after several meetings with our investors," said Elektrim spokeswoman Ewa Bojar. Proceeds from the issue of 17 million shares to domestic and foreign investors will be used to finance development of Elektrim's key telecom concerns and expansion of specialized services. Another 5.1 million shares are to be set aside for employee options, and the remaining shares will be used to buy stakes in an e-commerce company from Dutch retailer Eastbridge. Elektrim is also planning to issue $150 million in high-yield bonds by the end of the year to finance its fixed-line phone companies. (Reuters) T.J.