Kulczyk Holding possible target for Warta share issue

Warta shareholders will make a decision about a new share issue on Aug. 23. The issue will be aimed either at the biggest shareholder, Kulczyk Holding, or investors chosen by the supervisory board of the insurer. Other than Kulczyk Holding, the potential investors will not be current shareholders, as the company wants to acquire the needed capital over the shortest period. Money from the issue will be spent on Warta's investment plans. The supervisory board will decide the price, to whom and under what condition to sell the shares. This exclusive right, which may be given to the supervisory board, must be voted through by 80% of the shareholders. However they may not be in favor of such a move, as their shares will be diluted. Kulczyk Holding along with affiliate Euro Agro Centrum have 71.9% of Warta shareholder votes. The second largest investor Franklin Resources Inc. holds 10.1% of votes. (Gazeta Wyborcza, page 24)