Моscow. August 12, 2011. The board of directors of OJSC PhosAgro voted on August 11 to issue additional ordinary shares to be used in the A2 preferred share conversion.
The company is planning to convert all of its 35,999 A2 preferred shares with a face value of 25 rubles into the same number of additional ordinary shares with the same face value. The transaction will take place on the seventh working day after the public registration of the share issue, at which time the preferred shares will be cancelled.
After the conversion of the preferred stock, the equity capital of OJSC PhosAgro will remain unchanged at 311,192,700 rubles, comprised of 12,447,708 ordinary 25-ruble shares.
Maxim Volkov, OJSC PhosAgro CEO and member of the board of directors, said that the decision to go ahead with the conversion had been taken on advice from investment banks, which recommended simplifying the equtiy capital structure as much as possible to increase the company's investor appeal.
As has been reported, in the future PhosAgro is planning to conduct a ten-for-one ordinary share split.