Conares invests $2.2m in COS

Combinatul de Oteluri Speciale (Special Steel Plant – COS Targoviste) will undergo a share capital increase by at least $2.2 million, following a contribution from the majority shareholder. The company management proposed shareholders to increase the capital by $2.8 million by contribution in cash. This amount includes the investments the current majority shareholder, Russian-held Conares Trading, based in Switzerland, had pledged in the privatisation contract signed with the Privatisation Authority (APAPS) in August 2002. The capital increase is scheduled for debate by the General Meeting of Shareholders on April 24. The price of the new shares will be at least the same as the par value, 25,000 ROL/share. COS’ quotation on the Stock Exchange, however, is 8,000 ROL, which makes it highly unlikely that the minority shareholders would participate in the capital increase. ZF