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. Last Updated: 07/27/2016

Czech Firm Wins Ingosstrakh Ruling

PRAGUE -- A Moscow court has issued an injunction blocking a capital hike at Russia's second-biggest insurer Ingosstrakh, minority shareholder PPF Investments said Monday.

PPF Investments, a Czech private equity group, has been locked in a battle with Basic Element, the majority shareholder of Ingosstrakh, over PPF's influence in the firm.

The dispute follows a general meeting of Ingosstrakh shareholders on Oct. 8 when Basic Element voted to quadruple the firm's registered capital to 10 billion rubles ($409 million) through a closed issue of shares.

The share issue threatens to dilute PPF's stake in the insurance company from 38.5 percent to less than 10 percent.

"The Arbitration Court in Moscow has ruled in favor of the plaintiffs issuing the preliminary action, which forbids the [Federal Service for Financial Markets from approving and registering] the additional shares emission of Ingosstrakh until the whole case is debated and the final verdict is passed," PPF Investments said in a statement.