Consumer goods
August 20, 2008Flash Note: Kovelmoloko — Additional Share IssueAccording to a press release issued by Kovelmoloko, the company is going to increase its charter fund by 15.2 times to USD 58.61 mln. The final decision on increasing the charter fund is up to KMOL’s shareholders and will be made at the company’s AGM on August 27, 2008. Its management is planning to use the proceeds from the additional share issue toward the modernization and development of its assets. Our earlier target, adjusted for the share issue, is USD 0.20 per share. We reiterate our recommendation of “BUY” for Kovelmoloko.