The board of directors at OJSC PhosAgro , at a meeting on August 11, approved a decision for issuing additional common shares, into which the company's A2 preferred shares will be converted, the company said in a statement.
PhosAgro plans to convert all of its 35,999 A2 preferred shares, at a face value of 25 rubles each, into the same number of common shares at the same face value. The conversion will take place on the seventh working day after the state registration of the additional issue. At the same time, the preferred shares will be extinguished.
Following the conversion of the preferred shares, PhosAgro 's charter capital will remained unchanged in value (311,192,700 rubles) and consist of 12,477,708 common shares at a face value of 25 rubles each.
"The decision to convert the preferred shares was made at the suggestion of investment banks, which made a recommendation that the company simplify its charter capital structure in order to become more attractive for investors," the statement said.
It was earlier reported that PhosAgro plans to split its common shares at a ratio of one to 10.