SIF Muntenia buys 20% more in Plastex

SIF Muntenia bought another 20% in plastic producer Plastex Tulcea for nearly $500,000. The most likely seller is the Romanian Investment Company Cyprus (RIC) investment fund, sources on the market say. RIC held 19.9% in Plastex and this sale could be part of the fund’s strategy to liquidate all its interests in Romania, now that its life span is coming to an end. The representatives of the fund could not be reached for comment on the deal. The sale of the shares was done in response to a tender offer put out by SIF Muntenia for the remaining 40% in Plastex not in its possession. The offer was put out last month, with SIF willing to pay 1,650 ROL/share after having previously invested 26bn ROL (6,000 ROL/share) in a capital increase of Plastex. The investments made by SIF Muntenia in Plastex over the last few months are one of the reasons why the SIF investors criticised its managers, accusing them of poor patrimony management. Early this year Plastex had begun a capital increase operation, during which none of the shareholders, not even SIF Muntenia, subscribed. The shares were later publicly sold for 6,000 ROL each and, surprisingly, SIF Muntenia was one of the main buyers. ZF