Get the latest updates as we post them — right on your browser

. Last Updated: 07/27/2016

Yukos to Boost Capital by 25%

The board at Russian oil major Yukos has approved a 25 percent increase in its charter capital, the company said in a statement Tuesday.

The planned issue of 559.2 million ordinary shares at a nominal value of 4 kopeks each will be offered through public placement at a price of 6 rubles (25 cents) per share.

Yukos stressed that all current shareholders would have first rights to buy the stock. "Shareholders with voting shares of Yukos oil company have pre-emptive rights to acquire shares of the new issue," the statement said.

However, the issue could mean that three foreign banks - Daiwa Europe, West Merchant and Standard - will see their stakes diluted to 25.52 percent between them, making it unlikely that they will invest further in Yukos, said Ivan Mazarov, an analyst at Troika Dialog.

Yukos' current charter capital consists of 2.2 billion shares. The company has an additional 5.7 billion declared shares that will source the planned emission solely authorized by the board.