OREANDA-NEWS. February 10, 2010. Yasynuvatsky Machinery (UX: YAMZ UK) shareholders plan to vote at an EGM on March 23 on increasing the company’s charter fund by 2.2x to UAH 232.5 mln via an additional share issue. Shares are to be placed at par, UAH 4.65. Subscription is scheduled to start 10 days after publication in the press of the EGM’s decisions and will continue for 10 days, according to the company’s announcement. Proceeds are planned to be used for investment purposes and to increase working capital. Yasynuvatsky Machinery posted a net loss of UAH 11.2 mln in 2009, vs. its net loss of UAH 66.4 mln in 2008.

Concorde Capital: Yasynuvatsky Machinery shares are currently trading far below par: the last deal was closed at UAH 0.28 per share (MCap of ~USD 0.8 mln). We think there is a reasonable chance SCM will become a new controlling shareholder through subscription of all the additional share issue. Planned proceeds of USD 15 mln are higher than the annual sales of the enterprise and more half of its total assets, clearly more than the enterprise might need for working capital. Moreover, Yasynuvatsky Machinery will technically be forced to change its status from “open joint stock” company to “public joint stock” company, based on current laws, which would increase minority rights protection in terms of buyback options during further possible share capital increases.