5 Noiembrie 2009
Fondul Proprietatea sells Centrofarm stake
Fondul Proprietatea has sold its 17.36% stake in pharmacy chain Centrofarm Bucharest (ticker: CEOF), in a deal that fetched around 6.83 million lei (€1.54 million), the Fund said in a release to Bucharest Stock Exchange.
The sale of the 1.13 million shares was completed at a price of 6 lei each, 50% above the yesterday’s closing quote. Gross earning from the sale was 4.08 million lei, considering the historic cost of the interest, of 2.47 million lei.
Audit company PricewaterhouseCoopers evaluated a CEOF share at 4 lei at the end of August, namely 4.6 million lei for the entire holding.
Fondul Proprietate decided to dispose of its holding in Centrofarm as a possible capital hike would force the Fund to subscribe shares of 2.38 million lei to keep its interest. Should the Fund failed to use its preemption rights, the stake would have diluted to 9.5% from 17.36%.
Shareholders of Centrofarm Bucharest are expected to discuss a capital hike of 13.71 million lei in a rights issue.
The Fund also took into account the financial losses Centrofarm reported over the past four years, the slim chances of producing a return similar to that obtained from the sale, as well as the Fund’s inability to control the company’s policies and programs.
Centrofarm pharmacy chain reported loss of 6.3 million lei (€1.5 million) in the first half this year, two-fold higher than 2.9 million lei a year earlier citing 5% increase in expenses.
Centrofarm has a share capital of 13.71 million lei, divided into 6.56 million shares with a face value of 2.09 lei. The majority shareholder of the company is Generalcom Bucharest with 74.06% stake, while the Authority for State Asset Recovery holds 0.15%.
Audit company PricewaterhouseCoopers evaluated a CEOF share at 4 lei at the end of August, namely 4.6 million lei for the entire holding.
Fondul Proprietate decided to dispose of its holding in Centrofarm as a possible capital hike would force the Fund to subscribe shares of 2.38 million lei to keep its interest. Should the Fund failed to use its preemption rights, the stake would have diluted to 9.5% from 17.36%.
Shareholders of Centrofarm Bucharest are expected to discuss a capital hike of 13.71 million lei in a rights issue.
The Fund also took into account the financial losses Centrofarm reported over the past four years, the slim chances of producing a return similar to that obtained from the sale, as well as the Fund’s inability to control the company’s policies and programs.
Centrofarm pharmacy chain reported loss of 6.3 million lei (€1.5 million) in the first half this year, two-fold higher than 2.9 million lei a year earlier citing 5% increase in expenses.
Centrofarm has a share capital of 13.71 million lei, divided into 6.56 million shares with a face value of 2.09 lei. The majority shareholder of the company is Generalcom Bucharest with 74.06% stake, while the Authority for State Asset Recovery holds 0.15%.