Unita, to delist Turism Transilvania

Unita Turism acquired 42% in Turism Transilvania, the hotel chain owner, through a public takeover bid run on the Stock Exchange during the last two weeks. The value of transferred stock amounted to 91 billion ROL (2.4 million euros). Unita thus owns 92% of Turism Transilvania’s share capital and will launch another takeover bid in order to suspend the company’s shares from trading on the stock exchange. The two companies will subsequently merge, as Unita is planning to create a national hotel chain. The most important subscribing shareholder was SIF Transilvania, which owned 39% of shares. The financial investment company has long accused Unita of mismanaging Turism Transilvania, as the company has reported insignificant profits over the last four years and did not distribute any dividends. SIF officials maintained that the merger plan would harm them. The price offered by Unita was 30,929 ROL/share, several percentage points above the stock’s market price. At the end of this week, Turism Transilvania shareholders will tackle the company’s merger with Unita Turism and with other hotels in which it holds a majority stake. The company resulting from the merger will own 28 tourism units, most of which are hotels, and the company’s future investments will be destined to units it already owns. ZF