Bulgarian holding co Chimimport to raise cap to 150 mln levs

Bulgarian holding co Chimimport to raise cap to 150 mln levs

Chimimport, Bulgaria's biggest holding company, will raise its capital from 130 mln to 150 mln levs through the issue of 20 mln new shares, the outfit, controlled by Varna-based economic conglomerate TIM, said in a filing with the local stock exchange.

The necessary paperwork will be submitted for review to the financial regulator by the end of July, said Alexander Kerezov, deputy chairman of the Chimimport managing board.

The capital raise will most likely happen in early September.

Chimimport majority owner Chimimport Invest will subscribe some of the new shares, said Kerezov, adding that there were no plans to increase the holding company's free float which stood at 19% towards the June 25.

Kerezov said the majority owner would like the company to celebrate its first anniversary as a publicly traded corporation before it offers more equity to outside investors.

Chimimport executive director Ivo Kamenov said about a month ago that the free float will not increase to 25% before 2008.

The proceeds from the planned capital hike will be invested in subsidiary companies. A portion is slated to raise the capital of the Central Co-operative Bank.