PRAGUE, April 25 (Reuters) - Central European real estate developer Orco Property Group called an extraordinary general meeting to run just hours before an annual meeting on May 28 to discuss a capital reduction and issuance of new stock.
The company posted record loss after write-offs last year, mostly due to provisions for an unfinished 192-metre Zlota 44 residential tower in Warsaw, which Orco said it wanted to sell.
An invitation to the general meeting said there would be a motion to cut nominal value of shares to 0.1 euros from 1.0 euro, reducing the registered capital to 11.45 million euros.
“The purpose of such decrease of the share capital is to adapt the share capital and the accounting par value of shares to the prevailing market situation, notably the company’s share price,” it said.
If the reduction is approved, there would be a vote to authorise the issuance of up to 200 million new shares.
The firm has been under increasing influence of its largest shareholder, real estate investor Radovan Vitek, has built up a 30.7 percent stake in the group. (Reporting by Jan Lopatka)