New capital increase at UCM

The Board of Directors of Uzina Constructoare de Masini Resita (Machinery Building Plant – UCM Resita), a company controlled by the Swiss consortium Inet Group, will make a decision today, regarding a potential increase of the company’s share capital by up to 2.11 million dollars (1.67 million euros). The company’s management had not provided any further comment on a potential capital increase by the time the story was ready for print. At the end of May, UCM shareholders approved delegating responsibility to the company’s management for capital increases up to the above-mentioned sum, according to the investment programme. The information disclosed to the Stock Exchange did not specify the sources to be used for the capital increase. UCM has conducted several capital increases over the last two years. One such capital increase conducted in 2004 was the object of litigation that lasted until this year. SIF Banat-Crisana, one of the main shareholders at the time, asked for the irreversible annulment of a decision, made by the Board of Directors, by which an increase worth 5.4 million RON (1.3 million euros) had been approved. Neither SIF Banat-Crisana nor SIF Oltenia took part in this increase and drastically reduced their stakes in the company. The litigation even went to the High Court of Cassation and Justice, which has recently rejected SIF Banat-Crisana’s claim, the decision being irrevocable.