Kiev's Roshen confectioner to increase charter capital by $13.7 mln

MOSCOW. Sept 7 (Interfax) - Kiev Confectionery Factory Roshen, part of the Ukrainian Roshen corporation, will increase its charter capital 33.2% to UAH 2.006 billion through an additional issue of shares worth UAH 500 million [approximately $13.7 million at the current exchange rate].

"The financial resources raised from the placement of shares will be 100% directed to the purchase of production equipment," Ukrainian media reported, citing the company's report in the information disclosure system of the National Securities and Stock Market Commission.

The placement of additional shares may lead to an increase in the share of the majority shareholder, Roshen Confectionery Corporation, owner of 96.9017% of the shares of the PJSC at the end of Q1 of this year, to 97.674%, the report says.

The decision on the additional capitalization of the company was made at a shareholders meeting held in absentia on August 21, it said.

In total, 2 billion ordinary shares with a nominal value of UAH 0.25 are planned for issue; they will be placed at a market price at par value, which was determined by appraiser AR G Satellite LLC.

Roshen is one of the largest confectionery manufacturers in Ukraine and Eastern Europe. It unites Kiev, Kremenchug, two Vinnitsa confectionery factories, the Vinnitsa dairy plant, the Biscuit Complex in Boryspil, as well as Klaipeda confectionery factory in Lithuania and the Bonbonetti Choco factory in Hungary.

The corporation produces nearly 320 types of confectionery products with a total volume of about 300,000 tonnes per year.

The network of Roshen branded stores in Ukraine includes about 70 stores in different regions of the country. The first one opened in 2009 in Kiev.

The beneficiary of PJSC Kiev Confectionery Factory Roshen is the son of the ex-president of Ukraine Pyotr Poroshenko, Alexei Poroshenko.

The official exchange rate as of September 6 is UAH 36.57/$1.