The rights of Hydraulic Elements & Systems AD-Yambol, allowing investors to take part in the forthcoming capital increase of the company, will be traded between 23 May and 5 June on the Bulgarian Stock Exchange.

The auction of the unsold rights will be held on 14 June, and the deadline for subscription of shares from the capital increase is 29 June 2007.

The issued rights will be traded under BSE code R1HES, and the ratio between the issued rights and the new shares is 1/0.16.

The new share issue is expected to be registered for trade on BSE-Sofia in July 2007.

The company plans to increase its capital from 2.62 mln leva to 3.039 mln leva via the issuance of 419,000 new shares with a face value of 1 lev each and issue value of 19.75 leva each.

Net value of revenues from the public offering after costs deduction is expected to reach 8.148 mln leva.

Net profit is expected to amount to 11.118 mln leva up 6.2 times from its level in 2006.
The company forecasts sales revenues would reach 42.81 mln leva this year, and profit would increase to 2.053 mln leva from 1.761 mln leva in 2006.

Hydraulic Elements & Systems has launched its five-year Technological and Organization Development Program, which envisages initial investments of 12.7 mln leva.

Initial investments will come from the initial public offering of shares from the company’s capital increase (8.2 mln leva), credits (1.9 mln leva) and own funds (2.6 mln leva).

Stara Planina Hold controls 73.73% from the company’s capital. Slavyanka AD has 9.58%. The last date for transacting shares of this company on the BSE-Sofia, as a result of which the holder will be entitled to exercise their voting right at the general meeting, is 18 May 2007.

25 shares on this position changed hands today at 25.50 leva/share.