Mol issues new shares to distribute in company incentive plan

Mol Nyrt, Hungarian Oil and Gas Public Limited Company, Hungary's largest energy company, announced it will issue 345,126 shares and distribute them among company executives in an incentive program. Budapest-based MOL will convert the shares into exchangeable bonds the company granted to executives and board members in a program approved in September 2003, MOL said in a stock exchange statement yesterday. MOL shares fell 3% to Ft 21,155 yesterday in Budapest. They gained 6% so far this year, valuing the company at Ft 2.3 trillion ($10.7 billion). The capital increase was made as part of the convertible bond program approved by the EGM held on 1 September 2003. The approved incentive scheme links a significant part of the compensation of the members of the Board of Directors and senior managers to the development of the price of MOL shares on the stock exchange. Within the framework of the program, MOL issued a total of 1,200 convertible bonds with a par value of Ft 10 million each. Bond holders submitted 194 bonds for conversion, therefore 345,126 shares will be allocated to them after the registration of the capital increase by the Court of Registration. (bet.hu)