OREANDA-NEWS. August 13, 2010. Mostotrest announced that its Board of Directors decided to split the company’s existing shares. Each ordinary share at par value of RUB28 will be converted into 200 ordinary shares at a par value of RUB0.14 each. This translates into a split ratio of 1:200, with 1,241,200 existing common shares being converted into 248,240,000 shares, reported the press-centre of OTKRITIE Financial Corporation.

The conversion of ordinary shares will be carried out within 6 working days of the date of the state registration according to the records on the personal accounts of the register on that day.

View: Last month, management discussed potential changes in the company, thus the stock split may foreshadow a possible offering of shares or indicate preparation for M&A transactions in the near future. We take the news as positive because the stock split will boost Mostotrest’s liquidity.

Action: Mostotrest shares rose by almost 6% yesterday on the news. Although at present we do not have a recommendation for the stock, we believe that some positive steps will be taken by the company in autumn.