The holding will issue new shares, after which the free-float will reach 15-25% of the capital. Kolchev said the fresh funds will be used for expansion and to finance the development of the group's units.
“We may decide to increase the capital of our subsidiaries. We may also hike the capital of Elana Trading to up to 10 mln leva in order to improve the capital adequacy.” Kolchev also said.
Last year Elana Holding was restructured into two separate units - Elana Financial Holding (operating in the sphere of non-banking financial services) and Elana Holding (other activities).
Elana Financial Holding unites Elana Fund Management, Elana Trading, Elana Property Management and Elana Investments.
The company also announced plans for the launching at least two new funds and two new real estate investment trusts (REIT). More details will be disclosed later. The only thing revealed at today's conference was that one of the funds will be focusing its activity in the region and will be denominated in the euro currency.
Veselin Petrov said one of the new real estate investment trusts will be the first of its kind in Bulgaria. Kamen Kolchev added that the fund will be investing in land, but will not deal with construction of shopping centers or vacation complexes.
According to the company estimates, Elana Property Management will complete projects worth some 400 mln leva (204.51 mln euros) by 2010. During that period Elana Agricultural Land REIT is expected to add between 450,000 and 500,000 decares to its land portfolio.
Elana Investments' aim is to confirm its position on the market of consultant services and development of projects under EU programs for both private enterprises and agricultural producers.
The company also announced financial results for 2007 at today's press conference. Elana Holding posts net profit in the amount of 7.47 mln leva (3.81 mln euros), which is 180% up from a year ago. 2007 total income came to 49.31 mln leva (25.21 mln euros) or 50% up from 2006.