Policolor shareholders will not receive free shares, as, at least for now, a share capital increase operated by incorporating reassessment differences and the company’s own funds is not feasible.
“Such a decision was never made. For the moment, there are problems with the capital increase to be made by adding the value of the land on which the company is built, for which shares have been issued towards SOF (State Ownership Fund),” Florin Dolea, Managing Director at East Fund Management told Ziarul Financiar. East Fund Management administrates the Romanian Investment Fund (RIF), which owns 29.19% of Policolor shares. Dolea’s statement was intended to end speculations referring to a possible Policolor capital increase.
Florin Dolea says that, when the land became part of the company’s share capital, the issued shares were evaluated according to Policolor market value, which dissatisfied SOF representatives, who contested the increase in court. “This is why the capital increase started in March was not finalised either and the company cannot receive the money from the shareholders, although it needs it badly, especially during this season,” Florin Dolea added. At that time, investors bought 4.66 million shares for a price of 4,000 lei per share, their total value amounting to 18.6 billion lei, which should enter the company’s account. Dolea believes that a compromise will be finally reached with SOF “We want to capitalise the company. The increase must be done with cash.”
The company is to submit financial results for the first quarter to the financial circumscription and to send the respective data to investors. Florin Dolea did not comment on these results but explained the following: “I think that shareholders should understand that this domain of activity has a cyclic evolution: the best results are registered during the summer season. In winter, lacquers do not sell very well, therefore losses ensue.”
Paint and lacquer producer Policolor after the first three months of the year registered losses standing at 14.6 billion lei and an operational result of one billion lei.
During the same period of time, the company posted operational revenues amounting to 88.5 billion lei, higher than the operational revenues of 53.7 billion lei registered after the first quarter of last year. According to company managers, during the first quarter of this year, sales went down by 14%, following lower paint consumption in the auto industry. Policolor managers this year intend to launch new products in order to improve the offer, thus supporting the positive evolution of turnover estimated for the current year.
Policolor shares are traded on the second tier of the Bucharest Stock Exchange.