At present, the law obliges shareholders who own more than 1 percent in SIF shares to sell the shares exceeding the threshold on the market.
“This is an excellent opportunity to discuss this threshold, which should be raised or even eliminated. In two or three weeks, we will finalize a draft of the by-laws for the new investment company and will submit this in a memorandum for government approval,” added the President of AVAS.
SIF Transilvania already requested its shareholders to express themselves in favor of an increase to 5 percent of the threshold. Last year, SIF Banat-Crisana and SIF Moldova proposed to their shareholders a raising of the threshold to 2 percent, but the SIFs have a constant problem in terms of the quorum needed for strategic decisions.
The sixth SIF will be established based on minority share packages which AVAS still owns in 376 companies, whose assets have a nominal value of some €40 million. Analysts believe that the majority shareholders of these companies could attempt an aggressive lobby against the project, as this will mean they will no longer be able to negotiate directly with AVAS on the takeover of residual packages and they will be “bringing home” a new shareholder, with far greater demands. “Majority shareholders will find that the new SIF is a more difficult partner, who will be interested in maximizing dividends cashed in from portfolio companies,” said Mihai Caruntu, head of the Market Research Department of Banca Comerciala Romana (BCR).
The new SIF is due to be listed on BVB following an initial public offer (IPO). “The company asset evaluation and listing processes will not take as long as those for Fondul Proprietatea” [a fund established to compensate persons whose assets were confiscated by the communist regime], said Mircea Ursache.
