OREANDA-NEWS. October 2, 2009. As a result of an additional issue of shares, Oranta’s authorized capital increased to UAH 775 million. The increase of the authorized capital has been planned by the company’s shareholders and management since the beginning of the last year. In October 2008, when Ukraine began to experience the economic crisis, the company’s owners and management agreed on capitalizing Ukraine’s largest insurer.

In the course of intensive negotiations in winter 2009, Oranta’s management and shareholders determined all key parameters of the forthcoming capitalization and agreed on the final volume of issue. On April 17, 2009, the general meeting of Oranta’s shareholders decided to increase the company’s authorized capital by UAH 600 to UAH 775 million. It was planned that the authorized capital would be increased through additional issuing nominal shares (102,580,000) with a nominal value of UAH 5.85 each.

At the first stage of the additional issue of shares, the company sold shares only to existing shareholders in the amount proportional to their share in the authorized capital of Oranta. The first stage lasted 15 calendar days, from June 16, 2009, to July 30, 2009, inclusive.

At the second stage of the additional issue of shares, which began on July 1, 2009, the company’s shares could be bought not only by existing shareholders, but also by physical and legal persons who were not Oranta’s shareholders. It should be noted that according to the legislature, the second stage of issuing shares could take a year and last until July 15, 2010. However, on the first day of the second stage investors showed profound interest in the company’s securities, and it became clear that the subscription would end much earlier than July 15, 2010.

As of July 6, shareholders and investors of the company applied and partially paid for 102, 104,037 shares of the additional issue to the amount of UAH 597,308, 616,45, which made up 99.53% of the planned volume of issue.

In the course of subscription for Oranta’s shares, Kazakhstan BTA Bank, a large shareholder of the company, proved its interest in Oranta’s asset by buying 35,17 % of the company’s shares to the amount of UAH 211,066,590, 15.

At the same time, other large Oranta’s shareholders—Cyprus-based Colorino Trading Limited and Saleta Limited—that expressed their intention to maintain their share in Oranta’s capital never took part in the additional issue of shares.

In this connection, Oranta’s shareholders and management made the strategic decision to attract a new investor who would fully understand the financial business and would be respected by the business community of Ukraine. Mr. Nikolay Lagun, a large domestic businessman, became the new investor of Oranta.

After conducting the due diligence, the company of Nikolay Lagun subscribed and paid for 45 % of Oranta’s shares. It should be noted that the other Oranta’s large investor, Kazakhstan-based BTA Bank, rated highly the professionalism and responsibility of its new partner in Ukrainian insurance business.

The results of the subscription for Oranta’s shares will be approved by shareholders at the meeting on October 30, 2009.