EBRD to pay $6.23m for 15% in Banca Transilvania

The European Bank for Reconstruction and Development (EBRD) acquired 15% in Banca Transilvania for which it will pay 6.239 million dollars, namely 0.105 dollars/share. The face value of one share stands at 1,000 ROL. According to the price paid by EBRD, Banca Transilvania is worth 41.596 million dollars.

Banca Transilvania shares were quoted at 2,750 ROL/share on the Bucharest Stock Exchange last week, namely 36.1 million dollars in stock exchange value.

Iosif Pop, the bank’s chairman, told the Extraordinary Assembly of Shareholders held last Friday in Cluj that EBRD was supposed to buy stock for 9 cents/share, but decided to increase the price to 10.5 cents due the bank’s small shareholders.

Their stakes will decrease following the share capital increase, but they will be “rewarded” afterwards with free shares to be granted after a second share capital increase. “This share capital increase will be decided during the next Assembly of Shareholders, perhaps next March,” Pop specified.

Shareholders accounting for a 72.2% stake in Banca Transilvania were in favour of EBRD entering the bank, while 0.02% shareholders overruled the transaction, with another 5.27% abstaining.

As EBRD entered the bank’s shareholding structure, the share capital will increase from 336.736 billion ROL to 396.160 billion ROL. The share capital increase will be performed through the private placement method, as the current shareholders will be withdrawn the pre-emption right for this capitalisation.

The legal proceedings regarding the authorisation and the deposit of the capital inflow are to be concluded by October 15. “The amount (the six million dollars, i.e.) will be mainly used for the expansion of the bank’s network (including acquisitions) and the launch on the mortgage and leasing market,” Iosif Pop said.