FP RO – The largest shareholder asked for new topics on GSM agenda (neutral)
Manchester Securities, the largest shareholder of Fondul Proprietatea (FP), has requested the addition of new topics on the incoming GSM agenda. The shareholder is asking for several changes to FP’s bylaws regarding revoking and appointment of the asset manager. Thus, currently, the asset manager could be revoked at the first calling of the GSM with the vote of two thirds of participating shareholders. Under the new proposition ithe asset manager could be revoked with the simple majority of the participating shareholders. The quorum requirement for the first calling remains 25%.
Moreover, the current fund manager should be required to call a GSM at least 6 weeks prior to expiration of its 4 year mandate so that the shareholders could vote either the extension of its mandate or the initiation of a tender to select a new manager. The selection will be organized by the Board of Nominees. We view this piece of news as neutral for FP shares.
SIF5 RO: Erste intends to increase its shareholding in BCR to 99.5%
According to the local financial daily, Erste Bank, which owns at present 93.6% of Banca Comerciala Romana (BCR), intends to increase its shareholding in the latter to 99.5%. SIF Oltenia is the only remaining SIF which kept its stake in BCR . According to the agreement between the SIFs and Erste, SIF5 would get the same conditions for the sale as the other SIFs if it decides to sell by the end of this year, which is around 20% cash with the remaining shares swapped into Erste shares. Since 2011, SIF5 participated in one share capital increase of BCR and for the shares obtained it would probably get back just the amounts subscribed. Given the losses reported by the bank for 2012 we believe SIF5 has a rather weak negotiating power. We already value its stake in BCR using the terms of the agreement signed in 2011 with Erste wo we see a neutral impact of the news for SIF5.