Shareholders authorized the company’s management to increase the registered capital of up to HUF 288 million through the contribution of cash exclusively in order to satisfy the stipulations of concluded and forthcoming share-lending agreements with Switzerland-based GEM Management and UK-based GEM Global Yield Fund Limited. The authorization will be valid for three years starting from the date on which these share-lending agreements come into effect.
Shareholders also authorized the company’s management to conduct a cash-based increase in registered capital of up to HUF 160 million exclusively in order to satisfy the stipulations of concluded and forthcoming call option agreements with GEM Global Yield Fund Limited. The authorization will last for four years starting from the date on which these share-lending agreements come into effect.
The above authorizations are related to an agreement CIG Pannónia signed last December with Switzerland-based GEM Management on a €20 million capital investment over three years. The agreement also gave GEM the right to subscribe 4 million CIG Pannónia shares over four years at a price of HUF 1,595 per share on the condition the turnover-weighted average spot market share price reaches HUF 1,501 in the 24th month from CIG Pannonia’s listing. If the share price is under the threshold, GEM can subscribe the shares at a price of HUF 938 plus half of the turnover-weighted average in the 24th month after the listing.
In a separate announcement CIG Pannónia said that the AGM also authorized the board to raise registered capital by up to HUF 40 million through the private placement of shares in several installments for full-time, part-time or new employees free of charge. The employee shares will be issued against net assets in excess of the registered capital, and will have the same nominal value as the company’s ordinary shares have at the time of the placement.
CIG Pannónia currently has 63,283,203 ordinary shares of HUF 40 nominal value each, with combined face value of HUF 2.53 billion.
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