BVB S.A. shares double value in one year

BVB is currently worth €167 million, based on the price paid for a share package sold last month by one of the company's 89 shareholders, the HTI Valori Mobiliare brokerage and financial investment company.

The price is close to broker estimates. "The stock exchange is worth some €150 million, but the value would double if the company were listed," according to the President of brokerage company Eldainvest, Adrian Manaila, for Business Standard.

BVB's shareholders, both companies and individuals, last year discussed a possible listing of the company, but no decision has been made to date.

BVB is worth 10 times less than the Milan Stock Exchange, valued at some €1.7 billion. The London Stock Exchange and Nasdaq are estimated to be worth $5 billion (€3.66 billion) and $3.5 billion (€2.55 billion), respectively.

Last year, BVB was worth €75-80 million, according to accounting firm Ernst&Young. "If we look at the volume of transactions, we see it has doubled since last year, so it is normal that the price has also risen," BVB General Manager, Stere Farmache, told Business Standard. HTI sold part of its participation for RON 150/per share (€47.28), double the price another shareholder, brokerage company Dorinvest, requested for its shares in 2006. According to sources on the market, Dorinvest sold at RON 77/per share (€24.27).

Farmache added that the selling value of shares is set according to the supply-demand ratio, which is influenced by shareholder preemption right.

Although it doubled in one year, the rise in BVB's market value is still below that of companies listed on the Bucharest Stock Exchange, such as Rompetrol Well Services, Orsova Shipyard, and Electroputere Craiova, whose capitalization increased five times.

BVB shareholders decided to launch derivative transactions this year, and plan to expand operations for short selling.

The company's largest shareholder is the Intervam brokerage house, with 2.96 percent of shares, followed by HTI Valori Mobiliare, with 2.76 percent, prior to the sale of its shares. According to the BVB by-laws, only brokerage companies have the right to vote. Of its 89 shareholders, 73 are brokerage companies, and 16 are individuals.

Shareholders
The company's largest shareholder is the Intervam brokerage house, with 2.96 percent of shares, followed by HTI Valori Mobiliare, with 2.76 percent, prior to the sale of its shares. According to the BVB by-laws, only brokerage companies have the right to vote. Of its 89 shareholders, 73 are brokerage companies, and 16 are individuals.