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Humet board asks mandate to increase capital at October EGM to finance acquisitions

Supplementing the agenda of an EGM on October 10, the board of Hungarian dietary-supplement maker Humet will propose that shareholders provide it with a mandate to increase the company's registered capital by at most a combined HUF 2 billion by December 31, 2011, Humet announced on Saturday.

The aim of the capital raise is to finance acquisition plans and provide development finance to the new acquisition.

In order to allow quick action, the board will also ask shareholders to authorize it to carry out the above capital raise(s) with the condition that existing shareholders or holders of exchangeable bonds be prohibited from exercising preemption rights.

The earlier published agenda of the October 10 extraordinary shareholders' meeting included a HUF 485 million reduction of registered capital through reducing the shares' nominal value in order to increase profit reserves. The registered capital will drop to HUF 20.2 million as a result of the capital reduction, capital reserves will increase by HUF 485 million and the nominal value of Humet shares will drop from a recently increased HUF 600 to HUF 24 per share.

Humet reported IFRS consolidated shareholders' equity of HUF 1.593 billion, including registered capital of HUF 506 million at the end of June 2010. Humet shares trade in the B-category at the Budapest Stock Exchange. (MTI-Econews)