Shareholders of banks to receive a “gift” of over €227 mln

The shares have nominal value, while their Stock Exchange value is much higher. These will be awarded in one of the largest capital increases of a company listed on the Stock Exchange. To date, oil company Petrom had the highest capital increase of a BVB-listed company.

Banca Transilvania’s market growth was due to capital increases, a strategy also adopted by another listed bank, Carpatica. The largest bank on BVB, BRD-Societe Generale, was able to attract financing easier and preferred to distribute dividends in cash from profit. Erste has not announced dividends its shareholders are due to receive.

Banca Transilvania plans to increase its capital by over €120 mln, through last year’s profit capitalization and premiums on past years capital increases, worth €8.2 mln.

The capital increase has doubled since last year and is almost equal to capital operations in the past three years. Banca Transilvania is controlled by a group of businessmen from Cluj. The most important shareholder is the European Bank for Reconstruction and Development (EBRD), which owns 15 percent.

Banca Carpatica will have the smallest distribution of free shares since its listing in 2004. The bank will give 7.1 free shares for every 100 owned in a capital increase worth €3.4 million.

BRD plans to give 45 percent of its 2007 profit in the form of cash dividends.