Is Alprom's time coming?

The shares of aluminium processing company Alprom Slatina are currently traded at 30,000 lei, this year’s high.

Alprom shares have risen by 20% over the past two months. Brokers consider that the price of the shares was pushed by the latest events concerning Alro Slatina shares, especially the public purchasing offer launched by US-based Marco International trade company, which holds 17.14% in Alprom, both directly and indirectly.

The Americans have repeatedly said they are willing to participate in Alro and Alprom privatisation and to merge the two companies. According to the traders, RASDAQ investors expect Marco to launch a public purchasing offer for Alprom shares that are available for trading. Besides Marco International, the Privatisation Authority is the main shareholder in the company (69.92%). “There have been some rumours lately about a capital increase by distribution of bonus shares being planned.

Moreover, just as Alro was the centre of attention, it seems that the time for Alprom should be coming,” Ionut Gheorghiu, trader with BRD Invest said. According to the market analysts, a merger between the two companies is the best move a joint majority shareholding could do in the future.

Alprom purchases the bulk of the raw materials from Alro and the products of the company may actually bring high revenues if the outlet is certain. Alprom Slatina over the first quarter of this year registered 18 billion lei (700,000 dollars) in gross profit, 2.2 billion lei higher than over the year ago period.