NOK looking to double charter capital

Novosibirsk Tin Works is expected to advance a proposal to its shareholders to double the company’s charter capital. The placement price for the shares of an additional issue was set at $12 per share, i.e. 40% below the market price as of November 11, 2007.

Novosibirsk Tin Works made a proposal to double its charter capital by floating additional shares to be considered by EGM on December 25, 2007. The record date is November 20.

The Board of Directors at its meeting held on December 19 decided to convene an extraordinary meeting to obtain shareholders’ approval to upsize the charter capital by floating 1,600,000 additional shares with par value of Rb 250 (about $10) worth Rb 400 mln (about $16 mln).

The shares are to be floated by closed subscription for the benefit of Cyprus Prescada Consulting Ltd., Zinas Kanther & Origenous and Novosibirsk-based Intes. The placement price for the additional shares is projected at Rb 300 (about $12) per share.

For the record, the tin producer’s charter capital currently amounts to Rb 400 mn (about $16 mn) divided into 1.6 mn common shares with par value of Rb 250 (about $10) each.