Dacia operates $210m capital increase

Dacia Automobile increased its share capital by 5,800 billion lei ($210m) through cash contribution. Dacia minority shareholders are quite unlikely to join this operation and therefore Renault is to hold more than 90% in share capital, from its current 80% stake.

Automobile Dacia SA has increased the share capital from 2,581 billion lei (about 100 million dollars) to 8,381 billion lei (300 million dollars), by issuing new shares with the face value of 1,000 lei.

The company’s Management Board is in charge with performing all the procedures required by the share capital increase.

Renault currently holds an 80.1% stake in Dacia. The other significant shareholders are the investment fund Broadhurst, with a 7.4% stake, and Romania Investment Company, with about 4%.

Broadhurst manager Andrei Siminel says that the fund cannot participate in the share capital increase because it does not hold enough information in order to make a decision.

“Under these circumstances, we cannot invest 15 million dollars, which would be our share,” Andrei Siminel said.

Renault purchased 51% in Dacia from the State Ownership Fund in 1998. Renault’s stake rose after two share capital increases. Renault subscribed both capital increases, but small shareholders only subscribed the second.

On April 5, Dacia launched a new marketing campaign, called “The Open Doors Operation.” Clients may buy all Dacia models in stock at a discount between April 5 and April 9.

Over this period, the operations required by concluding credit formalities take a mere 15 minutes and the financing bank is BRD (the Romanian Development Bank). The credits are due over 3 or 5 years, with 30% of the car’s value paid in advance. The instalments may be equal or may decrease.

On April 5, Automobile Dacia opened a new office in Bucharest, on Calea Floreasca. The building shelters a showroom, which is also a sale office. The showroom spreads on 300 square metres, where 7 cars, namely the entire Dacia range, are exhibited.