BVB’s value rises to €211.8 mln as Morgan Stanley acquires a further 1.28%

Morgan Stanley, one of the world’s top investment banks, last week acquired 1.28 percent of the share capital of the Bucharest Stock Exchange (BVB), making it and HTI Valori Mobiliare top shareholders of the stock exchange, according to data posted by BVB.

The American investment bank bought a package of 63,464 BVB shares through Morgan Stanley&Co. International PLC at RON 150/per share, leading the value of the stock exchange operator to be quoted at €211.88 million. The shares were sold by Sorin Gheorghe Varlan, President of the H&C Securities brokerage house in Iasi, who made available his entire 1.31 percent BVB package on Friday. Morgan Stanley representatives declined to comment on the BVB share transaction. According to information circulating on the capital market, H&C Securities representatives are selling their BVB shares ahead of closure of the brokerage house. H&C Securities handled transactions worth some €3 mln in 2007.

The Dorinvest financial investment services company also offered to sell its 1,756 BVB shares on Friday for the top share price at RON 177/per share. If these sell at this price the value of BVB will reach €250 mln.

According to the most recent information, HTI controls 2.76 percent of BVB, and owns with individuals involved some 15 percent of the Sibiu Monetary-Financial and Commodities Exchange (BMFMS). Morgan Stanley and HTI Valori Mobiliare own 4.04 percent of BVB. The investment bank was notified at the end of November by the Romanian National Securities Commission (CNVM) that it was approved to take over HTI Valori Mobiliare, one of the largest independent local market brokerage houses. This approval led to Morgan Stanely obtaining the right to trade on BVB and BMFMS, making it the largest shareholder of the latter exchange.

BVB shareholders include 72 legal entities and over 28 individuals. Its €14.12 mln (RON 49.43 mln) capital is made up of 4.94 million shares. The Broker Cluj financial brokerage company is the top BVB shareholder, with 2.96 percent. The institution recently increased its share capital to RON 34.4 mln, through the issuing of 1,431,925 ordinary shares and 27,554 preferential shares, at a nominal value of RON 10/per share.

Morgan Stanley became a shareholder of BVB at the beginning of September, when it acquired 200 BVB non-voting shares from HTI Valori Mobiliare, at RON 150/per share. The American investment bank also acquired shares of several listed companies in 2007, including real estate developer Imotrust Arad and cable producer Romcab Targu Mures, with its investments in the two BVB-listed companies reaching some €9.3 mln. According to quotations on the last 2007 trading day, its 5 percent and 22.9 percent holdings of the two companies were worth €2 mln and €4.57 mln, respectively. Morgan Stanley acquired shares at the beginning of October worth some €4,500 on BMFMS, becoming its major foreign shareholder, following the CNVM approved takeover of HTI.