Friday, November 26, 2010

Romanian Banca Transilvania Delays Vienna Share Sale Until 2011

Banca Transilvania SA, Romania’s second-largest publicly traded bank, has postponed its plan to sell shares on the Vienna Stock Exchange until next year, Chief Executive Officer Robert C. Rekkers said.

The bank, based in Cluj-Napoca, Romania, is focusing on a share-capital increase approved by its shareholders on April 30 and decided to delay the share sale originally planned for this year, Rekkers said in an interview in Bucharest yesterday.

Banca Transilvania, whose largest shareholder is the European Bank for Reconstruction and Development with 14.6 percent, plans to increase its share capital by 392 million lei ($121 million) and will probably announce investor subscriptions by the end of the week, Rekkers said.

The capital increase has been challenged in court by Romanian investment fund SIF Banat-Crisana, which is also one of the reasons why the bank postponed the Vienna share sale, according to Rekkers. SIF Banat-Crisana is a shareholder.

“We’ve postponed the share sale on the Vienna Stock Exchange for next year because of legal problems with SIF Banat- Crisana,” Rekkers said. “Now we want to finish the share- capital increase and then we’ll go ahead with the share sale next year.”

To contact the reporter on this story: Irina Savu in Bucharest at isavu@bloomberg.net.

To contact the editor responsible for this story: James M. Gomez in Prague atjagomez@bloomberg.net

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