Orascom: AGM approves par value reduction of shares
The Annual General Meeting (AGM) of Orascom Development Holding on May 8 approved all proposals of the Board of Directors, in particular the reduction of the nominal value of the shares.
According to the company, the annual general meeting of real estate developer Orascom was attended by 233 shareholders, who approved all the proposals of the board of directors with a "clear majority".
The shareholders thus also resolved to reduce the par value of Orascom shares from CHF 23.20 to CHF 5.00 per share. However, there will be no distribution to shareholders. The reduction amount of approximately CHF 735.5 million will be allocated to the company's capital contribution reserves, Orascom announced.
In the invitation to the AGM, the step was justified by the fact that the share price remained below the nominal value of CHF 23.20 despite the significant increase in the share price in recent months. Since it was not legally permissible to issue shares below the nominal value, the BoD wished to reduce the nominal value to CHF 5.00 "in order to facilitate a potential issue of shares should such an issue be necessary in the future.
