Leading Automotive Company on BIST Announces a Whopping 900% Bonus Share Distribution

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Leading Automotive Company on BIST Announces a Whopping 900% Bonus Share Distribution

Ford Otomotive Sanayi, with a current capital of 350,910,000 TL, has decided to increase its capital by 900% from internal resources, reaching 3,509,100,000 TL, pending approval from the Capital Markets Board (CMB).

With this decision by Ford Otomotive Sanayi (FROTO), if the application to the CMB is approved, an investor holding 100 FROTO shares will have 1,000 FROTO shares as a result of the capital increase.

The Board of Directors announced the following decisions on the Public Disclosure Platform (KAP):

  1. In accordance with the provision stating that the registered capital limit of 500,000,000 TL can be exceeded once within each limit due to the incorporation of all domestic resources including dividends into capital and as a result of mergers, splits, or similar decisions requiring a general assembly resolution, the issued capital of 350,910,000 TL will be increased by 3,158,190,000 TL to reach 3,509,100,000 TL, entirely covered by internal resources.
  2. The shares resulting from the capital increase will be distributed free of charge to existing A, B, and C Group shareholders in proportion to their shares in the company.
  3. The entire amount of the capital increase of 3,158,190,000 TL from internal resources will be covered by Capital Inflation Adjustment Differences as per both the Tax Procedural Law (VUK) records and the financial statements prepared in accordance with Turkish Financial Reporting Standards (TFRS).
  4. The amendment of Article 6 titled "Capital" of the Articles of Association concerning the capital increase from internal resources will be made according to the provisions of the Turkish Commercial Code and capital market regulations as detailed in the attached document.
  5. It was decided to apply to the Capital Markets Board and other relevant institutions for the approval of the issuance document related to the shares to be issued and the draft amendment of Article 6 titled "Capital" of the Articles of Association regarding the execution of the free capital increase from internal resources.