"Mecanica Rotes" could triple its capital up to 7702 million lei

Shareholders of faucet producer Mecanica Rotes Targoviste (METY) have approved a capital increase of 52.44 million lei, up to 77.42 million lei, through cash contribution and reserve incorporation, in order to make direct and stock market investments, the company stated on Friday.

The increase will determine the issuing of 52.445 million shares, with a nominal value of 1 leu, 2.497 million bonds which represent 10% of the share capital, being awarded for free to shareholders who will register on the 22nd of October. The rest of 49.947 shares will be offered for subscription, through direct cash contributions, to existing shareholders at that same registration date, these being able to subscribe 2 new shares for an already owned one.

The management of Mecanica Rotes initially proposed to shareholders an increase of share capital of 5.1 times, by 102.4 million lei, up to 127.37 million lei, through direct cash contributions and the granting of free shares in order to invest in the stock market.

The shareholders have also approved the company"s transactions on the capital market between May 1st and September 30th. During the first term of 2007, Mecanica Rotes Targoviste (METY) has registered a net profit of 4.53 million lei, over three times larger than that of the same period of last year. The first term of 2007 Mecanica Rotes registered a running profit of only 47.500 lei, compared to 325.500 lei of the same period of 2006 and a financial profit of 5.33 million lei, four times larger than 1.38 million lei, which was the profit for the equivalent period of 2006. At the end of June 2007, Mecanica Rotes owned 18.29 million lei worth of shares in several companies listed at the Bucuresti stock market and Rasdaq.

The company"s turnover during the first half of this year was 3.66 million lei, an increase of 21.25% if compared with the same period of last year, when business amounted to 3.02 million lei. At the beginning of august, Mecanica Rotes Targoviste (METY) has increased its share capital by 12.16 million lei, up tp 24.97 million lei, because of the ending subscription period. As a result of the increase in share capital, the main shareholders of Mecanica Rotes are Catalin Chelu with 16.65%, SIF Oltenia (SIF5) with 17.24% and Amirastar Tradig SA, with 20.48%. The company"s production is focused on the manufacturing of oxygas welding and cutting kits, gas cylinder faucets, reducting gear, etc.

The company"s bonds are being transactioned on the basic Rasdaq category, under the METY symbol. The closing value for September 2nd was 1 leu, which leads to a capitalization of 24.97 million lei, the same as the share capital.