Russians may have made their move on Alro Slatina

One of the best and strongest companies in Romania, aluminium producer Alro Slatina, is craved for by many investors, mainly by the top international players in the field – US-based Alcoa and France-based Pechiney. The Russians from Ruski Aluminium are also interested. And companies dealing in aluminium trade have displayed interest, as well.

But before they decide to come, because they are still expecting Alro to be put up for privatisation, one of the most influential and powerful companies in Russia, Alfa, may have already made a move.

Several sources in the capital market say that the buyer behind the latest Alro stock transactions on the Bucharest Stock Exchange is Alfa Group. The tip was also verified by the representatives of companies dealing in metal trade.

To cover its tracks and therefore hide its real identity, the shareholder used offshore companies and custodian banks.

Most of the shares, that is over 8% in Alro, were sold by the Broadhurst Investment Fund early in February. The only mention made on the Stock Exchange so far is that Broadhurst is no longer a stockholder.

The stake bought from this fund was broken into smaller stocks to avoid a significant shareholder being reported. Pursuant to the law, anyone holding more than 5% has to be reported. Most likely the transactions were carried out by three investment vehicles.

“We have no idea as to who the buyer is. The transactions were made through custodian banks,” Stere Farmache, Stock Exchange general manager, told Ziarul Financiar.

The custodian banks are the ones entrusted with the shares for safekeeping and which are liable for these shares and get their orders from other companies. ING Bank Romania is one of the custodian banks used.

Sources abroad say that Russian Alfa Group, which has reached everywhere in the world, mainly in the financial centres in London and New York, have contacted other Alro stockholders to buy shares, too.

The Russians used the brokerage branch of the group, Alfa-Securities. Alfa representatives could not be reached by Ziarul Financiar.

At the beginning of February, Broadhurst investment fund unexpectedly decided to sell over eight percent of Alro, almost the best company in its portfolio. The decision was not made in Bucharest, but in New York, where the fund’s managers are, namely the company New Century Holding (NCH).

Even though the price derived, amounting to 24,000 lei/share, was almost 30% higher than the current market value, Alro is worth much more.

According to certain sources, the transaction is more complex than a simple share sale. Cristian Andrei Siminel, NCH representative in Romania, did not wish to comment upon this transaction.

Alro shares circulation is under much discussion at the moment, but there is little information in this sense.

Alro managers have been extremely tense lately. Contacted by Ziarul Financiar, they refused to comment upon the transaction and the information according to which Russian group Alfa may become a shareholder.

Alro is one of the best companies in Romania, while its general manager, Gheorghe Dobra, is deemed as one of the top managers on the Romanian market, being wooed by international groups in this field.

Last year, Alro posted turnover standing at almost 300 million dollars, obtaining profit of 53.3 million dollars.