OREANDA-NEWS. At the Dneprovsky Steelworks'(DMKD) AGM held the new share issue was cancelled, Millennium Capital, a financial services provider, disclosed. The item was taken off of the agenda on the initiative of the major shareholder - Industrial Union of Donbas (IUD).

Shareholders also approved the company's 2006 financials and decided not to pay dividends but instead to direct 5% of the 2006 income to the reserve fund and left 95% as retained earnings to fill working capital.

The decision to cancel the new share issue was made not at the company but at the IUD holding level. It does not imply the shutdown of the modernization process but simply indicates IUD's intention to change the terms of financing. According to Millennium Capital Experts, it as probable that the new equity issue will take place later with changed terms. "Thus, in regard to the current circumstances we maintain the 12-month target of DMKD's equity value represented in our latest research report," the experts concluded.