Impact Developer&Contractor calls GSM to renegotiate some credits and to extend Greenfield project
Real estate developer Impact Developer&Contractor (IMP) has called a GSM for March 29 to ask shareholders to approve the extension of Greenfield project, its main asset, by 25,000 sqm (dwelling area) and by 38,000 sqm (a park and recreation area). Impact also asks shareholders the power of attorney to renegotiate its credits, worth RON 68 mn at the end of 2012. We remind that during 2012, IMP sales increased to RON 22 mn, up 3x yoy fuelled by the sale of several houses from stock, which were already included in the P&L in production realized and capitalized. The company registered losses from the effects of IAS 40 (which applies to the accounting of property held for rental or capital appreciation) amounting to RON 11 mn during 2012 vs. losses of RON 34 mn during 2011. Net result was a loss of RON 39 mn vs. a loss of RON 45 mn during 2011.
SIF Transilvania intends to pay a 2012 DPS of RON 0.175
SIF Transilvania (SIF3) has called its (E)GSM for April 20, 2013 when shareholders are supposed to approve several issues. Thus, the management has proposed to pay a 2012 DPS of RON 0.175 which corresponds to a pay-out of 90% and implies a dividend yield of 24%. The ex-dividend date is proposed for May 8, 2013. We view this piece of news as neutral since the proposed dividend is only 5.9% above our expectations. Other proposal was the payment of 3.6% of its 2012 profit (i.e. RON 7.6 mn) as bonuses for its employees. The management has also proposed that SIF3 would adopt a dualist management style, with the establishment of a Board of Nominees. The shareholders will elect during the incoming GSM the members of the regular Board as well as members of the Board of Nominees.
Biofarm/Antibiotice - Ministry of Finance order regarding share capital adjustments raises chances for higher dividends
According to an order issued by the Ministry of Finance on February 15 and published in the Official Gazette on February 20, listed companies that started to report under IFRS for the first time are able to cover losses from the reported result with the adjustments of the share capital, practically cancelling the initial restatements of the share capital and reported result. We remind that both Biofarm and Antibiotice recorded upward adjustment of the share capital due to the convergence to IFRS. This was reflected in the balance sheet as a downward adjustment in the reported result, which lowered the potential dividends for Biofarm and practically cancelled chances for dividends at Antibiotice due to a negative reported result.
The application of the new order would allow Biofarm to distribute higher dividends. Thus, payout could stand close to 80%, pointing to a DPS of RON 0.015 (similar to our initial estimate). This translates into a dividend yield of 6.25% taking into consideration the latest closing price.
If the reported loss could be compensated with the upward revaluation of the share capital, Antibiotice would have a positive reported result and would be able to distribute dividends. ATB had a payout ratio of 43% last year, close to the one approved in its annual budget. For this year, if payout is close to the one approved in the budget, it could stand close to 85%. Thus, DPS could stand close to RON 0.038, while the dividend yield would be approx. 9% taking into account Friday’s closing price.
