SIF Transilvania shareholders on Friday approved with a majority of about 90% the proposal to increase the share capital by 54.6 million RON (16.4 million euros) to 109.2 million RON (32.8 million euros), according to data sent to the Bucharest Stock Exchange. The other four SIFs (Financial Investment Companies) will be disbursing dividends this year again.
The capital increase of SIF Transilvania passed during the first round of voting, with 35.4% of the share capital having convened.
This is the first capital increase operated by SIF Transilvania since the listing on the Stock Exchange in 1999.
The financial investment company tried to increase its capital last year, too, but failed, because it did not get the minimum required quorum of 50% during the second call for voting. Meanwhile, with Law 31 modified, the necessary quorum fell to 25% during the first call and to 20% during the second.
The increase will be operated using the reserves made from the profit of 2006 and of the previous years, other than the legal reserves, in exchange for which the SIF Transilvania shareholders will get bonus shares. Each shareholder registered by May 18, 2007 will get one bonus share for every share held. SIF Transilvania recorded a 53.16 million RON (15 million euros) net profit at the end of last year, an increase of 40.5% compared with 2005.
The company was the most profitable of the five SIFs in the first three months of this year, posting a 33.3 million RON (9.85 million euros) profit.
This SIF has budgeted 45 million RON (13.3 million euros) net profit for this year, as revenues will go down and spending will increase. The profit will be 15.3% lower than the 53.1 million RON of last year.
At the same time, SIF Transilvania set a minimum investment cap of 51.3 million RON (15.4 million euros), which will be entirely self-funded.
