Capital increase at Alro Slatina

Eagerly awaited by Alro stock speculators, the revaluation of stock of Slatina-based aluminum producer was approved during the meeting of the General Assembly of Shareholders (AGA), which took place at the beginning of this month.

Alro owners decided on the issue referring to the share capital raise, through revaluation, from 318.92 billion lei to 792.29 billion lei, as well as on the point referring to the split of the stock’s face value from 25,000 lei to 5,000 lei.

Following the approval of the operation, which was attended by all shareholders included in the company’s registry by August 25, the new structure of Alro’s shareholders includes: the State Ownership Fund (SOF) with a stake standing at 54.71 percent, CONEF Bucuresti, with a stake of 10.5%, Romanian Investment Company Cyprus – 10 percent, Broadhurst Investments Limited – 7.17%, East Europe Development Fund Limited – 3.42%, East Europe Frontiers Fund – 2.49%, Balkan Fund – 2.42% and Pictet&CIE London, with a stake of 1.57 percent in capital, the rest of stock belonging to small investors.

Alro stock was intensely speculated toward the end of July, most market players speculating the possibility of reevaluating the company’s assets and the distribution of free stock.

After the reference date, Alro stock price registered a significant slide, a reason for which the bourse director decided to suspend it from trading until the situation was cleared up.

“I have discussed with Alro officials and they promised me they would speed up as much as possible the registration of the two operations, that is the capital raise and the face value split, so that the stock should be reintroduced on trading.

According to their statements, Trade Registry formalities have already been fulfilled and only an approval from the part of the National Securities Commission (CNVM) is needed,” Stere Farmache, general director of the Bucharest Stock Exchange (BVB), told Ziarul Financiar.

On the first half of this year, Alro registered gross profit worth 824 billion lei, over fourfold higher than profit posted during the similar period of last year.