PAO Rosgosstrakh's board of directors approved the issuance of 116,125,935,230 additional shares with a par value of 0.04 Russian rubles apiece, Rambler News Service reported Jan. 30.
The shares will be offered via an open subscription to a wide range of investors, including institutional ones, and the company could raise up to 46.6 billion rubles via the issuance, taking into account the earlier announced offering price, the news report noted, citing Rosgosstrakh's general director Dmitry Makarov.
Russian media reported in December that the share issuance could be part of a merger deal reportedly planned between the insurer and Otkritie Holding JSC.
Rosgosstrakh's owner and president, Danil Khachaturov, was to step down from the post Jan. 30 ahead of the planned merger, Kommersant reported the same day, but added that the information was denied by the company. The newspaper also said Rosgosstrakh is set to receive 20 billion rubles in financial assistance as part of the mooted merger, with funds already being transferred to the insurer.
As of Jan. 30, US$1 was equivalent to 59.86 Russian rubles.