Astra Vagoane Arad increases capital

Rolling stock producer Astra Vagoane Arad SA will increase its share capital by 452.5bn ROL (some 13.81 million euros) to 1,360.3bn ROL. Most of the funds will be contributed by the Americans at Trinity Industries who now hold 97.9% in Astra. This amount actually represents Astra Vagoane’s debts to Trinity, namely a loan of around $12.5 million and a leasing contract worth $1.3 million. Astra Vagoane Arad’s investment programme is worth $25 million, with more than half of it covered by the capital increase. The investments are focussed upon the purchase of equipment and machinery. The Romanian State controls only 1.37%, while the remaining 2.1% is held by other shareholders. Majority shareholder Trinity Industries ran a tender offer in October 2003 in order to have Astra delisted from the Bucharest Stock Exchange. Astra Vagoane Arad last year finalised the take-over of the entire production, and assumed all the orders of the Czech Thrall Vagonka Studenka factory, part of the Trinity Rail Group. ZF