(Alliance News) - Rurelec PLC said Friday the High Court of Justice has approved its capital reduction.
Shares in the power plant developer closed 40% higher in London on Friday at 0.70 pence each.
Rurelec has subdivided its existing ordinary shares into 561.4 million new deferred shares and 561.4 million new ordinary shares. The firm is now looking to cancel its new deferred shares.
The company said the capital reduction will increase its distributable reserves.
"At present, the company does not have sufficient distributable reserves to pay dividends or - if the shareholders give appropriate authority in the future - to buy-back ordinary shares. The board therefore proposes that the capital reorganisation and capital reductions be effected in order to increase the distributable reserves of the company, which will facilitate these actions should the board consider it desirable in the future," Rurelec has previously said.
By Paul McGowan; paulmcgowan@alliancenews.com
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Rurelec (RUR)