SIF Muntenia, Navol's sole backer

SIF Muntenia bought most of the bonds issued by Navol Oltenita shipyard, paying more than 500,000 euros for them. Navol issued bonds that can be swapped for equity when they fall due, worth approximately 780,000 euros. As soon as the bonds are converted into shares, SIF Muntenia will become the yard’s majority shareholder. The capital market legislation says the convertible bonds must be first offered to the company’s shareholders depending on their actual interest in the company. SIF Muntenia is Navol’s principal shareholder at the moment, due to its nearly 50% stake. It acquired control of Navol following a capital increase by contribution in cash. The stake of Ioan Alexandru, the former majority shareholder who bought the yard back in 1999 went down to nearly 30% as a result of the capital increase. The bond sale price is 2,100 ROL, equal to the par value of a Navol share. One bond will be possible to swap for two shares. ZF