Chile’s CAP to Issue New Equity

Chilean steel processor CAP has approved a $550m capital increase plan through an equity issue, the company says in a filing with the Chilean regulator. CAP expects to issue 149m units at a price to be determined by the board. The company will dedicate 10% of the issuance to an employee compensation plan. Last month, the company announced it was ramping up investment, with a $1.6bn program. CAP expects to raise production to 17m tons from 8m by 2012. Expansion will be financed with cash on hand and new debt.