The management of SIF Transilvania will propose to the company”s shareholders a share capital raise and the granting of bonus shares.
As a result, SIF Transilvania is the second financial investment company (SIF), after Banat-Crisana, to have proposed such an operation since SIFs were set up. SIF Banat-Crisana had proposed a similar operation one week earlier.
SIF Transilvania plans to increase its share capital by 27.3 million RON (7.8 million euros), through the capitalisation of reserves made up from derived profit. The shareholders registered in the shareholder registry by April 19th would receive a new share for every two shares they hold.
If adopted, the decision will only increase the number of people standing in line in front of Regisco, the company, which keeps the SIF shareholder registry. In accordance with CNVM (National Securities Commission) regulations, in order to sell the bonus shares, investors must get an account summary from the shareholder registry. The long queues in front of Regisco are due to SIF residual shareholders wanting to sell their shares.
The company”s management did not specify in the statement it sent to the Stock Exchange whether it was going to grant any dividends in this situation. The dividends SIFs could have possibly granted from last year”s profit would have meant yields of around 2% compared with market prices, which would not have satisfied shareholders.
SIF Banat-Crisana had also forwarded a similar proposal. Chances for these proposals to be adopted are slim, considering the high dispersal of SIF shareholding structure.
At least half the share capital needs to be represented in the meeting in order for such proposals to be legally validated by the Extraordinary General Meeting of Shareholders. Yet, recent years have brought strong movements concerning the shareholding structure concentration, with 40% of total voting rights being represented in the latest General Meeting of SIF Transilvania. However this was also due to the fact that the company allowed for voting by mail.
SIF Transilvania representatives chose not to provide any additional information on the intention to increase the share capital.
Shareholders can vote in this year”s Meeting directly, through a representative on the basis of a special proxy or vote by mail.
SIF Transilvania stock closed the Friday trading session at a price of 2.18 RON/share, 0.5% lower.
The company has reported the lowest profit among SIFs since the beginning of this year, with a gain of less than 10,000 euros, but the representatives of this SIF specified they chose to focus on the strengthening of companies included in the portfolio during this period. catalin.ciocan@zf.ro