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Constanta Court has suspended the new directors of Argus Constanta (BSE: UARG)
Constanta Court has decided to suspend the decisions taken by the General Assembly of Shareholders dated September 16th for the edible oil producer Argus, under which the Board of Directors had been revoked and new directors were elected, in a suit opened by SIF Oltenia (BSE: SIF5), Mediafax informs. The decision was ruled by the court on Monday, according to a communiqué submitted on Friday by SIF Oltenia to the Bucharest Stock Exchange. “In the situation in which the restore of legality of company’s statutory bodies can not be achieved voluntarily, SIF Oltenia will trigger the forced execution of the sentence given by the Constanta Court”, the communiqué reads. SIF Oltenia asked in court the suspension of decisions taken by the General Assembly of Shareholders because on September 16th the representatives of several investors, including SIF and the investment fund Business Capital for Romania – Opportunity, controlled by BCR, failed to attend the meeting because they had no access in the factory. The same day, businessman Catalin Chelu attended the general assembly, where the presence to voting was 43.4% of the shares. The stake is similar with the stake indirectly controlled by the businessman. Then was elected a new Board of Directors, consisting of persons who in the past had been suspected of acting in concert with Chelu, usually shareholders or members in the management of companies represented by the businessman. The decisions of the general assembly haven’t been registered with the Trade Registry, because they were challenged in court. According to a report by Argus submitted on Friday to BSE, the only two directors of the company registered with the Trade Registry, Dan Voiculescu and Radu Constantin, convened Thursday an extraordinary meeting of the Board of Directors at company’s headquarters, but they were not allowed to enter the building. The two persons presented on Monday the decision to the Constanta Court, but failed to enter the premises of the factory. In the dispute between Catalin Chelu and SIF Oltenia for the control over Argus, has been required the intervention of the National Securities Commission (CNVM), to which SIF and other shareholders of Argus requested to reconvene a new general assembly with the same agenda. The commission ordered the convening of a new general assembly, but in this case also appeared an unpredicted situation, being convened two general assemblies in the same day. A meeting was convened by Dan Voiculescu and Constantin Radu, and the second by the Board of Directors appointed on September 16th. In this situation, CNVM ordered that the valid assembly was that convened by the directors registered with the Trade Registry, i.e. by Dan Voiculescu and Radu Constanta, on November 10th. Argus titles are suspended from trading since September 16th to clarify the situation on company’s management. At that time the titles closed at RON 4.01/share, up 2.56%. At this quotation, the company’s market capitalization is RON 143.4mln (EUR 33.3mln). (October 31st 2011)

SIF Transilvania (SIF3) announced that it has received additional EUR 3 million for BCR shares
SIF Transilvania shareholders announced its shareholders that it has managed to obtain an increase in the sale price for the 33.256 million BCR shares from RON 0.1/share to RON 0.5/share, which will bring additional EUR 3 million if shareholders will approve the sale of BCR to Erste. SIF Transilvania holds 651 million BCR shares and wants to sell a package of 103 million BCR shares (old), at a price of 1.0385 RON / share, and a package of 33.2 million BCR. (for BCR’s share capital increase in 2011) at a price of RON 0.50 / share, and to exchange 515,104,687 BCR shares with Erste Group Bank titles, at a contribution rate of 127.9583 BCR shares for a newly issued EGB share. The total value of the transaction (cash plus Erste shares) amounts to about EUR 96 million. SIF Transilvania convened shareholders on Monday, October 31st, in an Extraordinary General Assembly in order to vote on the sale of a 6% stake in BCR to Erste Bank, majority shareholder of BCR. On October 14th, SIF Muntenia (SIF4) was the first investment company which officially announced the sale agreement with Erste for package of 6% of BCR shares. SIF Muntenia managed to persuade the Austrians from Erste to raise EUR 3 million in cash over the amount initially announced last month, when four SIFs have signed an agreement in principle with Erste shares regarding the BCR sale. (October 25th 2011)

Ameropa to pay RON 1.7mln to delist Comcereal Constanta (CCRL)
Swiss Group Ameropa Holding, the majority shareholder of grain trader Ameropa Grains (formerly Comcereal Constanta - CCRL), is launching a public offer for a 4% stake in the company that does not own, according to an announcement published on BSE. Ameropa holds a 96% stake in Comcereal Constanta and plans to take complete control and de-list the company from RASADQ market. Comcereal Constanta is one of the few major companies in the agricultural sector which are listed on the stock market. Ameropa offers a price of RON 5.5 / share, 61% higher than the price on the BSE, and the total value of the offer amounts to RON 1,73mln (EUR 400.000). The offer assesses the company at EUR 10mln. AVAS owns a 1% stake and is expected to collect RON 468,000. Ameropa paid almost EUR 20 million during 2008-2009 interval to take control of Comcereal Constanta through several transactions on the stock market and a public takeover bid. Comcereal Constanta recorded last year business of RON 218 million (EUR 52 million), up 59% compared to 2009, and a net profit of RON 7.8 million (EUR 1.85 million), compared to losses of RON 7.3 million last year. The purchase offer will run during October 11th – 31st period and will be brokered by NBG Securities and Confident Invest companies. (October 6th 2011)

The shareholders of SIF5 Oltenia approved the negotiation with Erste Bank
After the shareholders of SIF4 Muntenia had given green light to directors to negotiate the BCR stake, SIF Oltenia also received a mandate to negotiate with Erste the manner in which to capitalize the 6.12% stake of BCR titles, the listing option having chances of only 1%, according to company’s chairman, Tudor Ciurezu. “Shareholders approved with 71.1% of the votes the fourth item on the agenda, which provides the negotiation with Erste of manners in which to make liquid the BCR stake. Under these circumstances, the probability for BCR to be listed is low, of 1%”, Ciurezu said. The same low chances for BCR listing were granted by the President of SAI Muntenia, Petre Szel. At the Ordinary General Assembly participated shareholders that own 16.4% of the titles. According to the documents of the assembly, SIF Oltenia directors believe opportune to make liquid the stake owned in BCR, considering the conditions on the local and foreign capital markets, the macroeconomic conditions and the world economic outlook, influenced by the crisis of sovereign debts, as well as the danger that Erste, after negotiations with Erste and performing a transactions, to exceed the 75% threshold in BCR. According to the deal between the management and Erste group, the financial investment company Oltenia would receive EUR 28.6mln and Erste shares of approximately EUR 82mln, in exchange for the 6.12% stake in BCR. SIF Moldova shareholders failed to meet the legal percentage to discuss the items on the agenda, the general assembly being postponed for Saturday. SIF Transilvania has convened the shareholders for October 31st and the management of SIF Banat-Crisana made no announcement in this regard.(September 27th 2011)

Intercontinental (RCHI) to buy back 10% of its titles
Hotel Company Intercontinental Bucharest (RCHI) announced it will buy back 10% of its own shares, valued at RON 7.8 million, a decision in this regard will be taken at the General Meeting of Shareholders scheduled for October 24th, according to a convening notice submitted to BSE. The company that manages the Intercontinental hotel in Bucharest is owned by several persons. Businessman Dan Adamescu indirectly owns 32.03% of the shares through Astra (16.32%) and The Nova Group Investments Romania (15.71%) companies. He increased its stake with a 16.22% package of titles in the second half of April, by purchasing shares held by RHIC Holding, registered in Luxembourg. According to sources on the hotel market, RHIC company is controlled by the Paunescu family. RHIC exited from Intercontinental shareholding structure in the second half of April, selling its stake of 49.12% for RON 51.1 million (EUR 12.5 million). Intercontinental's shareholders also include an offshore company based in Cyprus, associated with a company at The Nova Group Investments Romania. Mountbay Limited, registered in Cyprus, and The Nova Group Investments are associated with Zeta SPV Development Bucharest, a company whose administrator is Alexander Adamescu, the son of Dan Adamescu. Mountbay bought from RHIC a 32.9% stake in Intercontinental on the same day during which Adamescu increased its stake and RHIC exited from the shareholding structure. (September 26th 2011)

The future energy complex Oltenia will be listed on the stock exchange
The future energy complex Oltenia, consisting of SNLO and the thermal power plants Craiova, Turceni and Rovinari, will be listed on the stock exchange within two years from the establishment, the operation being agreed with the representatives of the Ministry of Economy with the Property Fund, which owns minority stakes in these companies. “We agreed with the Property Fund that the future Oltenia Complex to be listed within 24 months from the establishment and to have a dualist management, i.e. a Supervisory Board and an Executive Board, same as OMV Petrom”, sources of the energy market declared. Government initially planned to merge the key energy and coal producers into two national companies, Electra and Hidroenergetica, but it has given up this project and currently takes into account the alternative version of establishing two smaller energy companies, Oltenia Energy Complex and Hunedoara Energy Complex. Hunedoara Energy Complex will consist of the thermal power plants Paroseni and Mintia and the viable mines of CNH. Oltenia Energy Complex Oltenia would consist of SNLO and the thermal power plants Craiova, Turceni and Rovinari. (September 14th 2011)

Chelu bought almost a quarter of Electroarges Curtea de Arges (ELGS) against RON 3.9mln
Catalin Chelu continues to consolidate his position in Electroarges Curtea de Arges, the latest transaction of the businessman aiming for almost one quarter of the electric appliances producer. Chelu bought Thursday 23.44% of the company for which he paid RON 3.94mln (EUR 0.92mln). The transactions were brokered by City Invest, the brokerage house of the businessman; the buyers were nine different companies, according to reports submitted to BSE. All exchanges were made at the price of RON 0.5885/share, up 15% against Wednesday reference price. During the last sessions of the week, ELGS titles were losing 5.6%, to RON 0.5555/share. Catalin Chelu is the main shareholder of the company, at the end of the last year controlling over 37% of Electroarges through several companies. Dumitru Tudor is the second largest shareholder of the household appliances producer, with a stake of 10.7%. Electroarges recorded a net profit of RON 4.3mln in H1 2011, by 20% higher than in the same period of 2010. ELGS shares went down 40% this year. (September 2nd 2011)

Sibex stepped into the red in the first half, with a negative result of RON 57,000
Sibex market operator posted losses in the first half of this year, with a negative result of RON 57,000, compared to a profit of RON 273,000 in the first half of last year. In the first three months, Sibiu Stock Exchange achieved a profit of nearly RON 5,000, which means that in the second quarter recorded losses of RON 62,000. Sibex’s turnover in the first six months decreased by 20% to RON 865,000 against the same period of last year, worth RON 1 million. Market operator posted revenues of RON 1.1 million, 33% lower than those in the first half of last year, while expenses fell 16% to RON 1.2 million. On the derivatives market 609,542 contracts were signed, most of which are futures contracts, the value of transfers in the first half amounting to RON 3.72 billion. The volume of contracts traded was 38.5% lower than in the first half of last year, but the transfer value was 32.8% higher. « In the first half of the year, financial markets perceived the unfavorable influence of the deepening debt crisis in the EU, Greece being in spotlight. As a result, there was a reduction in the risk capital, situation that has affected the derivatives market also. To counter these effects, Sibex continued to promote a development policy of our products, to diversify the selection area for investors, giving them opportunities to trade many market segments. Thus, new products were launched, such as futures contracts on Property Fund shares, on euro / dollar pair, denominated in RON, on ounce of gold, also denominated in RON, and on price of Light Sweet Crude oil, all of new instruments entering quickly in the participants’ portfolios“, Sibex’ report reads. (September 1st 2011)

Laminorul Braila (LMRU), taken over last year by Mechel against EUR 9mln, recorded sales of EUR 114mln in H1
Laminorul Braila, plant acquired early last year by the Russian group Mechel, posted in the first six months this year an increase by 2.8 times in turnover, which reached RON 480.8mln (EUR 114mln). The company reduced its losses significantly in the same period, to RON 9.9mln. Mechel bought the metallurgical plant Laminorul Braila in a transaction worth EUR 9.4mln, in conditions in which a year ago the company posted business of only EUR 9.5mln. Currently, Laminorul Braila, which produces special steep profiles for the shipping industry that are exported in the Middle East, is one of the biggest steel plants listed on the stock exchange, outranked by another plant of Mechel group, in Targoviste, which in the same period posted sales of EUR 130.1mln. (August 30th 2011)

Vienna fights with Warsaw over the second floatation of the Property Fund (FP)
The General Manager of the Vienna Stock Exchange, Michael Buhl, came to Bucharest last week to try to persuade the decision makers on the advantages of listing the Property Fund on the Austrian market. The Vienna Stock Exchange thus tries to reenter the competition for the secondary listing of the largest fund in Romania, after the fund’s manager, Franklin Templeton, announced in early July that he would propose shareholders the listing in Warsaw, claiming that it would serve best the shareholders’ interest to increase the share price. The FP administrator listed then the reasons why they chose Warsaw instead of London, without any reference to Vienna, although they said they had taken into consideration the Austrian exchange. Michael Buhl said, however, that Templeton officials overlooked certain advantages offered by the Vienna exchange and that the fund’s shareholders should have at hand all the information to make a decision in this regard. “If they decide that it’s necessary a secondary listing of the Property Fund, then we believe that the Vienna Exchange is a better option than Warsaw’, Michael Buhl declared. The stake of the fight over FP between Vienna and Warsaw is to “conquer” the Romanian market. The Bucharest Stock Exchange is currently the largest independent stock exchange operator in the region and over the past years the Vienna exchange has shown its interest for a tight cooperation and even a takeover. On the other hand, the Poles try to pave their way for other Romanian listings on Warsaw exchange, their expansion strategy aiming at attracting issuers from the entire region. At the end, the decision will be taken by FP shareholders and market sources claim that the listing on Warsaw exchange has already the support of some of the largest shareholders of the fund. Thus, it’s hard to believe that the officials from Vienna will manage to turn things in their favor. (August 29th 2011)

Armax Gaz’ profit fell by more than three times
The turnover of Armax Gaz Medias, specializing in the equipment production for the oil and gas industry, plunged by 23% in the first six months of this year, from RON 56.2mln to RON 43.1mln, the net profit declining by over three-fold, from RON 4.2mln to RON 1.2mln. In the analyzed period, company’s revenues decreased by 32%, from RON 68.4mln to RON 46.3mln, while the expenses were reduced by only 29%, from RON 63.3mln to RON 44.8mln. Company’s general manager, Mircea Simion Vescan, owns 42.6% of the titles and the difference belongs to several shareholders.(August 29th 2011)

SIFs sold BRD titles in order to report profit. FP buys because it has nothing else
SIFs have sold in the first six months of 2011 a 0.74% stake in BRD after last year sold on the Stock Exchange around 2.6% in the bank. On the other hand, the Property Fund (PF) bought last year a 2.24% stake in BRD, which is the largest investment made on the Bucharest Stock Exchange since the Americans from Franklin Templeton took over the administration of the fund, in September 2010. In SIFs case, the sale of BRD shares is motivated by the need of these companies to report profits and by the strategy announced in early 2010 which mentioned portfolio diversification and reducing exposure to the banking sector, in the conditions in which BCR has not paid dividends for two years, and BRD has strongly reduced them. In the first half of 2011, the biggest profits have been reported by those SIFs which have sold stakes in BRD. SIF Transilvania (SIF3) sold 0.5% of BRD and reported the biggest profit of RON 90 million. SIF Moldova (SIF2) earned about RON 33.5 million, given that the company sold a 0.14% stake in BRD. In contrast, SIF Banat (SIF1) and SIF Muntenia (SIF4), which didn’t sell BRD titles, reported profits of RON 13mln and RON 10mln, respectively. On the other hand, the Property Fund has cash, but has few options to place them on the market. Thus, the fund bought BRD shares, as it found large quantities in the market, and “picked up” the shares found from Alro and Azomures. At Petrom, Transgaz and Transelec¬trica the fund can not buy as it already has large packages, SIFs titles are not very attractive because of the threshold, and other shares are not enough liquid to allow the construction of significant positions. In these conditions, Templeton turned to foreign markets, buying shares of Erste and Raiffeisen in Vienna, which is not exactly appealing to local investors. A solution that could turn advantageous for both SIFs and for FP would be the SIFs to sell FP a stake in BCR. SIFs are now pressed by their own shareholders to start BCR listing procedures, which was assumed at the privatization by the Austrians from Erste, but Erste heads are not willing to list BCR. Thus, SIFs are seeking for alternatives in order to liquidate BCR shares, and the easiest way would be the sale or exchange of BCR shares with Erste titles. However, such a solution does not guarantee the best result, because banks’ ratings are very low in this period and BCR’s results in the last two years have been weak. A partial exit would be more appropriate in this context, but if SIFs sell their holdings to Erste they may lose the advantages they currently have and automatically their stakes that will remain will become less valuable. This is because Erste, which owns 69% of BCR titles, needs SIFs for important decisions in the general meeting of shareholders, such as capital increases, because such decisions can not be taken with less than 75% of the shares, and SIFs hold together a 30.12% stake. Thus, the best solution would be SIFs to sell a stake to another investor, which must be an ally for BCR listing, and the most suitable investors would be the Property Fund, which has financial resources, knows local market and needs such investments in order to diversify its portfolios. In addition, Templeton showed last year, since administered FP, it is a formidable opponent for the Romanian state, which is the majority shareholder in several companies in FP portfolio, and FP involvement with a package of 5% in the BCR (1% from each SIF) would weight SIFs position. Last but not least, from such transaction would most benefit the market, as it increases the chances that the BCR will be listed.(August 26th 2011)

ArcelorMittal Roman (PTRO) wants to increase its capital by nearly RON 400mln
The management of ArcelorMittal Roman has convened the General Assembly of Shareholders to discuss the share capital increase with RON 396.8mln, by contribution in cash of the majority shareholder, although SIF2 Moldova, a minority shareholder, with a stake of 14% of the shares, is opposing the operation. The Roman-based company, controlled by ArcelorMittal group, has initiated a share capital increase with RON 568.8mln, from RON 36.1mln to RON 604.7mln since last year, to pay debts to creditors, especially to companies of ArcelorMittal group. The operation was postponed, because it was challenged in court by SIF Moldova. The share capital increase consists of contributions in cash, so the minority shareholders, including SIF Moldova, had to participate with an important amount of money to keep their stakes. (August 22nd 2011)

The transfer of 36% of Alimentara Slatina (ALRV), blocked by the National Securities Commission (CNVM)
SIF5 Oltenia challenged in court the share capital increase decision, after an audit report had revealed the possibility that SIF’s interests had been prejudiced. The capital market watchdog has blocked, for a two weeks period, the transfers with 150,000 shares of Alimentara Slatina, by which the company’s share capital increase had been increased, according to shareholders’ decision in mid last year. Alimentara Slatina, controlled with a 51.99% stake by SIF Oltenia, is on the “black list” of companies of SIF’s portfolio, where the SIF5 management announced to start the “cleaning”. About 130,000 titles of those upon which was established the distraint belong to the company Multifunctional Ecologic System SRL, based in Craiova, about which an audit of SIF Oltenia of February claimed that would be owned in equal shares by the sons of the former director of SIF5, Florian Teodor Buzatu. The remaining 19,800 shares belong to the Craiova Recovery Clinic, according to the Commission’s Ordinance. The share capital increase of Alimentara Slatina raised numerous question marks on the reasons for which SIF5 decided not to subscribe, accepting to reduce its stake. The audit report of SIF5 drew the attention that the company’s evaluation considered for the share capital increase stood at RON 1.54mln, lower than available funds, amounting to RON 1.58mln, that the company owned on June 30th last year, a month before the shareholders to decide the share capital increase. The same report reveals that Florian Buzatu decided, for SIF5, not to participate in the share capital increase of Alimentara. Thus, of the 6.2mln shares issued for the share capital increase, Multifunctional Ecologic Systems was subsequently reported with a stake of 33%. SIF5 had, on June 30th 2010, 81.86% of the company, but in November the same year it was reported with a stake of circa 51%. The general manager of Alimentara Slatina was, at that time, Marian Buzatu, brother of Florian Teodor Buzatu. “It’s not hard to identify the obvious interest of Mr. Buzatu Florian Teodor to gain a substantial stake in Alimentara Slatina at an undersized price”, states the report of internal control of SIF5 early this year. Blocking the transfer of the 150,000 shares takes place in the context in which SIF Oltenia challenged in court the share capital increase of Alimentara, asking the establishment of absolute nullity of the decision taken by company’s Board of Directors in September 2010, aimed at increasing the share capital. In late July, SIF5 management announced that it undertook measures to revoke the administrative and control bodies and the executive management of 14 companies of its portfolio and that it promoted civil and criminal actions to defend the interests of some of these companies, in which it was majority shareholder. Florian Buzatu was revoked from the position of SIF5 director at the end of April and was fined by CNVM with RON 5,000. Currently, ALRV titles are suspended from trading. The company shareholders had been summoned on August 11th to vote, among others, the proposed repurchase by Alimentara of an asset from Multifunctional Ecologic Systems, at the same price at which it had been traded in 2008. A report of ALRV submitted to BSE on August 12th informed, without too many details, that company’s shareholders had agreed unanimously that the general assemblies of shareholders could not take place. (August 18th 2011)

The turnover of Prospectiuni Bucharest (PRSN) increased by over 2-fold in H1
The turnover of Prospectiuni Bucharest, company controlled by businessman Ovidiu Tender, grew more than twice in the first half of 2011, to RON 140.1mln (EUR 33.5mln), supported by the contracts with Petrom and other companies, of which one in Portugal. The geological prospecting company posted in the first six months of the last year a turnover of RON 60.1mln. “The company has completed the works of projects contracted with OMV Petrom, in the areas of Adjud-Urziceni, Balteni, Sinesti-Galicea-Independenta, with Mohave Oil&Gas in Portugal, ADX Australia and Expert Petroleum. Currently are ongoing the works under the contracts with OMV Petrom (Runcu-Baicoi region), with Romgaz (Moldova Sud, Transilvania, Ozana Nord regions), as well as with Aurelian Oil&Gas”, reads a report submitted to Rasdaq market of the Bucharest Stock Exchange (BSE). Revenues also climbed twice, to RON 149.3mln (EUR 35.7mln) and the expenses grew by 70%, to RON 116.8mln (EUR 27.9mln). In H1 2010 the company posted revenues of RON 63.7mln and expenses of RON 68.8mln. Prospectiuni Bucharest ended the first half with a profit of RON 27.3mln (EUR 6.5mln), compared with losses of RON 5.4mln in the similar period of the last year. (August 16th 2011)

The Property Fund has bought 9.2% of Conpet Ploiesti (COTE)
The Property Fund (FP), managed by Franklin Templeton, has acquired a stake of 9.2% in the petroleum products transporter Conpet Ploiesti, which is the sole operator of the National Transmission System for Crude, Gasoline and Liquid Ethane. The fund has paid for the stake RON 27.1mln (EUR 6.4mln). Until yesterday the seller hasn’t been made public, but most likely it was SIF Muntenia (SIF4), which owned late last year a stake of 8.9% in the company. After the acquisition, the Property Fund reached a stake of 30% in Conpet, while the state controls the company with a stake of 58.7%, through the Ministry of Economy. Conpet is one of the most profitable and valuable companies listed on RASDAQ market, with a capitalization of circa EUR 65mln. (August 12th 2011)

A 9.2% Stake in Conpet was Sold Wednesday through a EUR 6.3 Million Deal Transaction
A 9.2% stake in the state-owned company Conpet Ploiesti (COTE) was transferred through a deal transaction on Rasdaq market of Bucharest Sock Exchange (BSE) amounting to RON 27.11 million (EUR 6.3 million). The 797,530 shares were sold at a price of RON 34, 6.22% above the reference. The shares were traded on the main market at a 3.44% higher price, of RON 33.1. At this quotation, the company’s market capitalization stands at RON 286.5 million. Conpet manages the national transportation system of petroleum products. The company is controlled by the state through the Ministry of Economy, which owns a 58.7% stake. The Property Fund has 20.05% of the shares, while 21.2% of the capital is held by other shareholders. Conpet shares usually record a very low turnover, and in the sessions with larger volumes the Property Fund was the one who bought or sold. The latest transaction with Conpet shares in which the Fund was involved occurred Friday, when FP bought 0.35% of the company’s titles for an amount of RON 1 million (EUR 240,000). (August 11th 2011)

Target Capital sees Condmag titles at RON 0.3
Target Capital analysts estimate that Condmag Brasov titles (COMI) will reach RON 0.3/share, in the next 12 months, recommending investors to keep these titles. According to Target Capital analysts, Condmag titles fluctuated in the first half between RON 0.25 and RON 0.304 at the Bucharest Stock Exchange, the capitalization decreasing by 18% following the unfavorable international macroeconomic and stock climate. Company’s turnover fell by 58%, to RON 41.2mln, in H1. Operating revenues decreased by 52%, operating expenses – by 48% and the expenses with utilities and depreciation plunged 12%, resulting operating losses of RON 1mln. The company invested RON 6.1mln, of which, however, the investments put into operation stood at only RON 2.6mln. The company’s net profit amounted to RON 0.2mln in the first six months, down 94% yoy. Analysts noticed an improvement of company’s situation in the second quarter, the turnover contraction pace slowing down and recording a net profit of RON 4.7mln. Basically, this profit offset the losses of the first half. The company announced for mid-July the conclusion of an agreement with OMV Petrom worth RON 12.5mln, with duration of completion of approximately 4 months. (August 9th 2011)

Condmag Brasov’s business fell 2.4 times in H1
Oil, gas and water pipelines builder Condmag Brasov (COMI) posted in H1 a turnover of RON 41.17mln (EUR 9.8mln), by 2.4 times lower than in the similar period last year. In January – June 2010 interval the company posted a turnover of RON 99.04mln. Condmag’s net profit dropped to RON 188,964, against a gain of RON 3.1mln in the first six months of the last year, according to data submitted by the company to the Bucharest Stock Exchange (BSE). Total revenues of Condmag declined 2-fold in the analyzed interval, to RON 50.71mln, against RON 101.01mln in H1 2010. The company recorded expenses of RON 50.33mln, down nearly 50%, compared with RON 97.3mln. The largest shareholder of Condmag is businessman Gheorghe Calburean, who owns through the company Dafora 45.82% of the shares. Calburean is also Chairman of the Board with Condmag and Dafora. In the shareholding structure of the Brasov-based company is also found the investment fund registered in Netherlands – OGBB A Van Herk, with a stake of 10.91%. Other shareholders total 43.26% of company’s capital. Condmag titles were traded on Friday at the price of RON 0.2602 per unit, down by 7.07%. Condmag has a market capitalization of RON 106.77mln (EUR 25.3mln). (August 8th 2011)

The Property Fund (FP) has exhausted the money allocated for the buyback program
The Property Fund (PF), managed by Franklin Templeton, has spent most of the amount allocated for the buyback program, without being able to save the shares from the pressure of sellers who continued to take the shares’ price down. The Fund has repurchased 188.2 million of its own shares, representing 1.3% of the share capital, amounting to RON 97.8 million. Te most part of the amount, of RON 44 million, was spent in the last two weeks amid debt crisis in Greece, when the FP has entered strongly in the market in order to stop a powerful correction of FP shares. The total amount allocated through the repurchase program stood at RON 120 million, thus the fund left with about RON 20 million, cash that would last only for a week if the redemptions would continue at this pace. The repurchase program will expire in March next year, but the Fund has already used a large part of the amount. The operation failed to stop the price of the shares to drop since their listing on the Bucharest Stock Exchange. Since May 11th, when the FP made the first repurchase and until now, FP shares lost 3.7% of value. Since FP’s listing on January 25th, the shares were under pressure from sellers. Also, foreign investment funds that have entered FP shareholding structure before the listing by buying shares at very low prices, preferred to sell the shares at the market price. By selling the shares bought on the gray market on the Stock Exchange, foreign funds have doubled or even tripled the money invested. Also, people who received FP shares as compensation also sold the shares, being interested only to collect compensation and not to make an investment, although they were shareholders in the Property Fund, one of the most valuable Romanian companies. The main purpose of the repurchase program was to support the share price. However, the repurchase program’s impact was reduced, as the volume of 188.2 million shares bought back by FP was only 6.5% of the total volume of 2.8 billion FP shares traded on Bucharest since May 11th, when it was concluded the first repurchase, and until now. In other words, the impact of repurchases on the share price was of 6.5%. Once the FP will run out of money for repurchases, brokers expect the news that the state’s shareholding decrease below 10% of FP capital, to stop the decrease of FP shares. "The fund will remain in the near future without resorts that support the share price on the stock exchange. FP transactions are still dominated by sellers, and price pressure is high. The price of RON 0.5 / share is an important reference and I do not expect to break this threshold. On the contrary, when the state shareholding will fall below 10% in the Fund, there are prospects for FP will enter an upwards trend, "said Adrian Lupsan, Deputy General Director at Intercapital Invest brokerage company. The state is currently the largest shareholder of the FP, with about 19% of the capital. Brokers expect that once the 19% stake of capital will be exhausted for the payment of compensation to former owners, the selling pressure will ease.(August 3rd 2011)

The Listing of Petrom Shares on the Stock Exchange Could be Resumed in 2012
If the state is not be able to sell at least 80% of the titles offered, the IPO of 9.84% of Petrom capital will be resumed in 2012, Dan Lazar, Secretary of State in the Ministry of Finance, told Mediafax agency. If at least 80% of the shares will not be sold and the price does not exceed the minimum price, the transaction will not occur, but will be resumed next year", the Secretary of State declared. According to the sale announcement, the offer will be considered successfully completed if, at the time of its closing, at least 80% of the shares offered will be validly subscribed at an offer price determined according to the prospectus. The government has set a minimum sale price for the 9.84 % stake in OMV Petrom (SNP) shares of RON 0.3708 / share, 2.6% below the last price on the stock exchange on Monday, the Minister of Economy, Ion Ariton, told Mediafax. OMV Petrom shares ended Monday’s trading session at price of RON 0.381 / share. (July 20th 2011)

Petrom Will Be Sold for RON 0.37 per Share
The minimum sale price of a Petrom share from the 9.84% package that will be privatized is RON 0.3708, according to NewsIn. The Ministry of Economy manages a package of 5,573,780,260 shares, representing 9.84% of the share capital of OMV-Petrom. The public offer of sale, the sale within a public offer is carried out through approved intermediary, selected according to the law, under the Decision 832/2010, which will be amended on Tuesday to set the minimum price for the package. According to this decision, the share price "determined and recommended" by the authorized intermediary is approved by a commission which includes the Minister of Economy and the Minister of Finance and a Secretary of State of the Prime Minister and other officials. The price must be approved by the public institution involved. The consortium led by Rennaissance Capital investment bank has recently started an offer to sell 9.84% stake of OMV Petrom owned by the Romanian state on the stock market (5.573.780.260 shares), the maximum sale price is set at RON 0.4600/share, according to a report submitted to BSE. Subscription is done by filling in forms for subscription by investors provided by intermediaries of the offer or members of the distribution group, the statement published on the Bucharest Stock Exchange states. (July 19th 2011)

Florin Pogonaru wants to take over 60% of Prodplast (PPL)
Florin Pogonaru, Chairman of the Romanian Businessmen Association (AOAR), will launch a mandatory takeover bid for 59.89% of the share capital of the plastic producer Prodplast (BSE: PPL). The businessman offers about RON 12.9mln for the 10,224,598 shares subject to the offer, i.e. RON 1.27/share. The quotation of PPL titles increased by 1.32%, to RON 1.2260/title during Friday’s trading session, when the decision to launch the bid was announced. The takeover offer will be undertaken by the three companies owned by Florin Pogonaru, Central European Financial Services, ECDL Romania and Floreasca Development and will be brokered by the company Voltinvest. The offer is scheduled to start on July 13th, following to be completed on August 2nd. According to the takeover announcement, the bidder’s plans aim at reorganizing the company, concentrating the range of products and winning market share. The three companies that will carry out the public offer for sale, together with Nord Bucharest (company controlled also by Florin Pogonaru – Ed.) will act in concert with Avaliser Trading, an offshore from Cyprus, holding together about 40.11% of Prodplast. (July 11th 2011)

The last week for preparing the sale of Petrom (SNP) shares on the stock exchange
Romania will begin as of July 11th or 12th accepting bids for the 9.8% stake in Petrom, the largest oil and natural gas company of the country, a source declared for Reuters. The sale is part of government’s plan to obtain through the Bucharest Stock Exchange RON 2.9bn (USD 998mln) this year, according to the agreement with the IMF and other creditors. “The offer is scheduled to start on the 11th or 12th (July – Ed.), the Commission for national security will give its approval this week”, the source quoted declared. Romania owns a stake of 21% in Petrom, in which the majority shareholder is the Austrian group OMV. The Property Fund, an investment fund established to compensate Romanians whose properties have been confiscated during the communist regime, owns another 20%. Previously the officials have estimated that by selling Petrom shares the state would get over EUR 500mln (USD 728mln). The Romanian Economy Ministry declared in June that the executive planned to sell its stake by the end of this month. Also, the government wants to sell stakes in the companies Transelectrica, Transgaz and Romgaz. (July 6th 2011)

Rompetrol Rafinare (RRC) Shares Have Revived: Plus 32% in Two Days
Rompetrol Rafinare shares (RRC), a company about which brokers say that it’s history for the Stock Exchange, have increased by 32% in the last two trading sessions on higher volume than usual. Yesterday, about 7.5 million Rompetrol securities worth RON 475,000 were transferred on the market, which has been the highest volume on RRC since September 2010 to present. The increases during the past trading sessions come after the last Thursday; the company’s securities reached a minimum price of the last two years, of RON 0.0481/unit, but amid the interest of the investors, the quotation rose quickly to RON 0.0635/share. "There is no specific information related to Rompetrol Rafinare. I think that maybe there is a tardy investor who didn’t get to sell during the offer and now he exits the shareholding or any information related to the procedure for withdrawal of shareholders. The price to exit the shareholding should be close to the price in the offer to take over, maybe 15% more or less. However, I believe that this company is already history", Octavian Dragolea, deputy general manager of IFB Finwest, said. Brokers believe that because of low turnovers lately on the Stock Exchange, investors are turning their attention on companies that have been ignored by the great majority of investors. "Maybe investors anticipate an important event which will take place in the next period, but I don’t have any information in this regard. It is possible that an important minority shareholder to negotiate a better price with the majority shareholder and thus increase the prices", Michael Muresian, trading manager at Intercapital Invest, said. Muresian also said that selling a large package of shares in pieces could be a tactic to extend the period to sell in order to attract other interested investors in selling their stakes. The Kazakhs from KazMunaiGaz, the majority shareholder of Rompetrol, have previously declared the intention to de-list the company from the Stock Exchange after, following the takeover bid which took place last year, it got to own about 98.6% of the controlling stake. KazMunaiGaz purchased in March 2010, through the Rompetrol group, about 22.6% of the company for which it paid EUR 84mln. The price paid last year by the Kazakh within the takeover offer was of RON 0.0751/share, with 18.2% above the level the securities were traded at in yesterday’s session, respectively RON 0.0635/unit. "Since the transaction at Rompetrol Refining took place, there has not been interest in these shares; it is a nearly closed company. I do not know what chances should I give to the option of the withdrawing offer since it was not announced anything in this effect. It's probably just speculation", Darius Moldovan, director of trading at Broker Cluj, said. The procedure of the withdrawal of the Rompetrol shareholders from the company is uncertain because the state and the Kazakhs are in Court because of a decision taken by the latter to convert the debts to the State into RRC shares. In mid-April the Court of Appeal Bucharest has annulled the ordinance of the National Securities Commission (CNVM) from July 2010 by which the Commission blocked the withdrawal procedure of the shareholders from Rompetrol Rafinare at the request of the Ministry of Finance. CNVM had the option to appeal the decision of the Court of Appeal. (June 7th 2011)

Romgaz’ floatation, among the priorities of the Economy minister
The Economy minister, Ion Ariton, declared on Friday, during a press conference in Sibiu, that the ministry had started the listing procedures for Romgaz, following to be completed in the autumn of the next year. “The listing on the stock exchange of Romgaz is one of ministry’s priorities. The listing procedure will be started and it will last approximately 12-14 months”, Ion Ariton declared. PM Emil Boc declared in January for TVR that the listing procedures of state-owned companies that began in 2010 would be completed in the first half of 2011, giving as example Transelectrica and Romgaz. The floatation of stakes in large state-owned energy companies is an old project of the authorities, part of Romania’s Energy Strategy. The former Economy and Finance minister Varujan Vosganian declared in December 2007 that in 2008 would be listed on the stock exchange stakes of 10% of each Romgaz, Nuclearelectrica and Hidroelectrica. In the meanwhile, Romgaz’ listing was postponed for 2011 and the floatation of Hidroelectrica and Nuclearelectrica was blocked because the two companies would be part of the energy giants Electra and Hidroenergetica. (June 6th 2011)

Tradeville brings E.ON, Bayer and Deutsche Telekom on BSE
The Financial Investment Company Tradeville has initiated the procedures for the admission to trading on the alternative trading system “CAN” – BSE of the German companies E.ON, Bayer and Deutsche Telekom, to facilitate for Romanian investors the access to opportunities offered by the evolution of the three companies’ titles. “Tradeville’s decision to bring titles of important international companies has been taken following the signals received from customers, to trade more easily titles listed on the major international stock exchanges. Tradeville will operate as a market maker for these three issuers to provide liquidity conditions”, declared, in a press release, Mihaela Biciu, general manager of Tradeville. The first stage of the admission to trading process consisted in the registration of the three companies’ shares in the RoClear system and that of clearing and settlement of the Central Depository, for investors to be able to benefit from the dividends granted by the three companies. Investors will be able to trade E.ON, Bayer and Deutsche Telekom titles in the shortest time possible, after the completion of procedural formalities. (May 30th 2011)

Target Capital: Potential Increase of 44% for Prospectiuni Bucharest (PRSN)
The shares for Prospectiuni Bucuresti (PRSN) are among the most sought on Rasdaq market, both by the scope of business and by financial results reported regularly. The turnover increased in the last six years with an average annual rate of 8%. In addition, Prospectiuni holds the dominant position on the domestic market of seismic prospecting (approximately 90%, according to management estimates). The cornerstone of the company is represented by the main customers – domestic companies producing oil and natural gas such as OMV Petrom, Romgaz, Rompetrol, and Regal Petroleum. A weak point, however, is the dependence of the sales of two large customers. The turnover last year was generated, at a rate of 43% by Petrom, while Romgaz had a significance of 24% in total sales of Prospectiuni. In Q1 2011, the turnover increased by 108% compared to the same period last year, up to RON 67.8mln, while the income generated from operations climbed with 103%, while operating costs have increased with 67%. The result from operations grew by 948%, up to RON 14.5mln, while the net profit stood at RON 12.9mln, up over 12 times compared to Q1 2010. For 2011 the company has budgeted a growth of the turnover with 98% compared to last year, up to RON 323mln (an increase of the sales internally by 73% and of the sales externally by 306%) and a gross profit of RON 62.2mln. “Given the favorable prerequisites for the evolution of the medium and long-term demand for services associated with hydrocarbon exploitation worldwide, the company’s expansionist plans as well as its undervaluation in terms of comparative analysis, we recommend “buy” for PRSN titles. However, we draw the attention on the risk factors (external and internal)”, Andrei Radulescu, analyst with Target Capital, stated. The target price estimated for the following 12 months is of RON 0.351/share, which represents a growth potential by 44% against the current quotation on the BSE. (May 23rd 2011)

Hidroelectrica to be listed in 2012
The Ministry of Economy will float, probably next year, stakes of 15% of each Hidroelectrica and Hidroelectrica, following the discussions with the International Monetary Fund (IMF), declared on Thursday Tudor Serban, adviser with the Ministry of Economy, according to Mediafax. “I proposed 10% (of Hidroelectrica and Nuclearelectrica shares – Ed.). There are still negotiations (with the IMF – Ed.), it seems that there will be a stake of 15%, maybe in 2012”, Serban stated in a press conference. Under the letter of intent to the IMF, the Government committed to sell minority stakes in OMV Petrom (10%), Transelectrica (15%), Nuclearelectrica and Hidroelectrica, so the state would collect a few billion of euros from transferring the stakes in all companies in discussions, declared the head of IMF mission, Jeffrey Franks, on May 10th. “In Hidroelectrica and Nuclearelectrica case we agreed that we would determine later the exact percentage. Significant means that in this case definitely less than 50%, because the state wants to keep a majority stake, but I believe that it should be more than 10%”, Franks declared. (May 20th 2011)

The Property Fund (FP) takes advantage from low prices and starts share repurchases
The managers of the Property Fund announced the beginning of the share repurchase program, the first acquisition being made against a downward trend of stock prices. The lowest price paid by FP for own titles was of RON 0.5105/unit. Just over 5.7mln shares were bought back at this price, the total value of the transaction being of RON 2.91mln. The exchange took place on May 12th, in the first day since the Fund’s listing when FP shares decreased (intraday) below RON 0.5/unit. The sharp decrease was expected in the market, considering that it was the first session when owners of FP titles benefited no longer from dividends. The series of acquisitions made by Franklin Templeton’s managers started on May 11th. The total value of repurchases stood at RON 3.88mln, the maximum price offered reaching RON 0.5351/unit. The plan formulated by FP managers provides the buyback of maximum 9.98% of the shares, at prices ranging between RON 0.2/unit and RON 1.5/unit. Previously, the amount allocated to the program stood at RON 216.6mln, but it was reduced to RON 120.3mln after the shareholders had decided to distribute a larger share of the profit as dividends. The Czechs from Wood&Co mediate the acquisitions made by FP within the share repurchase program. (May 19th 2011)

Tradeville to reduce trading fees starting with next month
S.S.I.F. Tradeville SA will reduce trading fees starting with June 1st, both for intra-day transactions, as well as for standard ones. The fee for intra-day trading will start from 0.25%, in the conditions in which until now the fee was at least 0.3%. Basically, intra-day trades concluded on StartradeRO (purchases and sales of equal volumes of shares of the same issuer, in the same day) will be charged at half of the standard fee amount, but not less than 0.25%. Standard fees will range between 0.3% and 0.65% since the beginning of next month. Thus, if until now portfolios lower than RON 30,000 were charged with a fee of 1%, the fees will drop to 0.65%. The new table of fess will combine all accounts of a customer, which will be charged considering the three months' average turnover or its portfolio. Also, the fee will take into account the turnover on the BSE and Sibex, reads the Tradeville release. "Through the changes made in the fee table, Tradeville wants to attract as many investors on the capital market. The decision is part of Tradeville’s strategy to boost liquidity on BSE market, offering investors the best trading systems at affordable costs", said Mihaela Biciu, CEO of Tradeville. Tradeville does not charge a minimum fee per transaction and customers can launch as many trading orders regardless of their size, and no monthly fee for account maintenance. (May 18th 2011)

Foraj Sonde Ernei to increase its share capital 12-fold
Mures-based company Foraj Sonde Ernei announced that it planned to boost its equity by RON 10.24mln, from RON 932,000 to RON 11.18mln. The share capital increase operation will be achieved through the contribution in cash from shareholders if they approve on May 17th the proposal of company’s management. According to a company release, the share capital increase operation will be achieved through the issuance of 4.1mln new shares with a face value of RON 2.5 each. The company announced at the beginning of the year that was interested to enter in the Iraq market by establishing subsidiaries in Kurdistan area this year. Moreover, the company has sent workers in Morocco and drilling installations in countries like Tunisia, but Iraq is the first country where they open a subsidiary. The company is controlled by the general manager and Board Chairman, who owns 71.88% of the titles. (May 13th 2011)

Euro Invest Bank Vienna takes over the brokerage company Transilvania Capital
Euro Invest Bank Vienna received NSC’s approval to take over 99% of the brokerage company Transilvania Capital, based in Miercurea Ciuc, so the Austrian investment bank returns on the Romanian capital market after an absence of five years. The representatives of the Austrian investment bank did not disclose the value of the transaction, but market sources say that it amounts to EUR 1mln. Euro Invest Bank was established in 1989 as independent broker on Vienna Exchange and in 1997 it received a bank license. On the Romanian capital market it entered in 1994. Also, the bank was a founding member of the Bucharest Stock Exchange through the company Austro-Rom, later renamed Euro Invest Vision. In 2006 the investment bank sold the brokerage company in Romania to a group of Greek investors, including the brokerage company Fortius Finance Securities. Following this transaction, assessed at that time at EUR 760,000, Euro Invest Vision changed its name in 2007 in Fortius Finance, raking this year the 33rd in the top of BSE’s brokerage companies. The brokerage company intermediated in the first four months transactions worth RON 29.5mln and had a market share of 0.35%. (May 10th 2011)

Alpha Finance Analysts Have Cut the Target-Price of Transgaz (TGN) Titles with RON 100
Alpha Finance analysts changed their recommendations for Transgaz Medias shares to "sale" and estimate a target price on these securities of RON 185 per unit, 25.7% below the level at which these titles were traded during yesterday's session, of RON 249 / unit. At the end of last year, the brokerage house analysts had a "hold" recommendation on Transgaz shares and a target price of RON 287.1 / unit, 55% higher than the current price. The reasons given by Alpha Finance analysts on the recommendation to sell the shares include the sudden changes in the company's dividend policy, the spectacular increase of the company's expenses for the external benefits provided for 2011, the increase of salaries by 18% over the past two years despite the ever decreasing gas consumption and poor market prospects. "For 2011, Transgaz planned a 70% increase of expenditures with external benefits of up to RON 271.9 million, costs that are mostly for maintenance works. However, last year the company was not able to achieve the expenditure of RON 39 million planned for this purpose and delayed the execution of some works of RON 199.4 million for 2011", reads the report. (May 6th 2011)

Buzoianu brothers are offering EUR 2.6mln for 41.8% of Retrasib Sibiu (RTRA)
Businessmen Octavian and Calin Buzoianu of Cluj, who own directly and indirectly 58.1% of the electric transformers producer Retrasib Sibiu, will launch during May 6th – 25th a mandatory takeover offer worth RON 10.67mln (EUR 2.6mln) to acquire the rest of 41.8% of company’s shares from the minority shareholders. The price offered within the operation is of RON 0.51/unit, slightly below the level at which RTRA titles were traded during yesterday’s session, of RON 0.52/unit. The offer will be mediated by the brokerage company IFB Finwest. The bidders holding together 58.1% of Retrasib shares are Trafo Proiect SRL, with a stake of 19.9%, Hold Invest SRL, with nearly 14%, Dana Anca Buzoianu – 1.2%, the company Scando Trading SRL, Catalin Buzoianu and Octavian Buzoianu – which own together slightly above 1%. According to the prospect, the group borrowed about EUR 2.2mln to raise the funds needed to start the offer. (May 4th 2011)

Transgaz Medias (TGN) Lost EUR 55 Million on the Stock Exchange
The shares of the natural gas transportation company Transgaz Medias (TGN) have lost 7% in yesterday's trading session, after the Ministry of Economy, the majority shareholder, has rejected the proposal to distribute record dividends of RON 338.7 million (EUR 83 million). The company's capitalization fell by EUR 55 million, to EUR 727 million. "Investors were obviously bothered by this (the rejection of the proposed dividend – editor’s note), because Transgaz dividend policy was so far relatively predictable and the shares were included in the defensive category, being preferred for long-term investments", Darie Moldovan, Broker Cluj director of operations said, quoted by Mediafax. The Ministry motivated its decision by saying that Transgaz needs money to finance the investments assumed by Romania in the Nabucco gas pipeline project. Theoretically, when more money remains in the company for investments, this should be positive for the long-term evolution of the company. But the investors need cash and have insisted on receiving dividends this year. (May 3rd 2011)