Banca Transilvania Holders Vote For RON0.3B Capital Hike - Sources

04.28.2011 By Andrei Circhelan

Shareholders of Romanian lender Banca Transilvania (TLV.RO) approved a share capital increase of 295.7 million lei (EUR72.7 million), to RON1.77 billion, by including reserves from previous years' profits, people who attended the Thursday meeting told MEDIAFAX.

Shareholders of Romanian lender Banca Transilvania (TLV.RO) approved a share capital increase of 295.7 million lei (EUR72.7 million), to RON1.77 billion, by including reserves from previous years' profits, people who attended the Thursday meeting told MEDIAFAX.

Stockholders also approved the bank's plan to buy back at most 0.95% of its shares for a long-term loyalty scheme for employees," the people said.

During the operation, the bank will issue 295.7 million new shares, with a face value of RON1.

Thus, it will capitalize reserves made from the net profit of previous years, worth a total RON206.9 million, and those from the net profit of 2010, worth RON88.7 million.

The stock will be distributed freely among shareholders registered on May 20.

The investors also agreed with the buyback of at most 14 million shares (0.95% of the share capital), at market price but no more than RON2 per unit. The buyback will unfold over an 18-month interval starting when the decision is published in the Official Journal.

In addition, shareholders approved the budget for this year, which forecasts a gross profit of RON180 million, up 33% on the year.

Net asset value should rise 11%, to RON24 billion, from RON21.589 billion at the end of 2010.

Revenue is estimated to rise 4% on the year, to RON1.506 billion, while costs are seen up 1%, to RON1.326 billion.

The bank currently has a share capital of RON1.477 billion, divided into 1.477 billion shares with a face value of RON1.

The European Bank for Reconstruction and Development holds a 14.61% stake in the lender, Bank of Cyprus holds 9.7% and board president Horia Ciorcila holds 5%, while the rest of the shares are traded on the Bucharest Stock Exchange.

Banca Transilvania shares closed up 1.73% on the day Wednesday, at RON1.532.