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20 DECEMBER 2018 AL CIRCLE

Vimetco and Conef sell 34% of Romanian aluminium maker Alro’s shares

EDITED BY : DEBANJALI SENGUPTA 2MINS READ

According to a report by a Romanian daily financial newspaper Ziarul Financiar, local brokerage firm Swiss Capital successfully placed 241 million shares of Romanian aluminium producer Alro Slatina through an accelerated book build (ABB).

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The shares sold represented a stake of nearly 34 per cent in the company and the value of the deal amounted to RON 723 million, equivalent to EUR 155 million. The transaction closed at a price of RON 3 per share, 11.5 per cent under Alro’s closing price on December 18.

This summer, Alro’s major shareholder Vimetco attempted to sell a 54 per cent stake in Alro through a secondary public offering (SPO) but failed. The targeted price range in the SPO was RON 3.5-4.

In the first nine months of 2018, Alro recorded a net profit of RON 203 million (EUR 43.6 million).

Before the transaction, Russian group Vimetco and affiliated company Conef had over 87 per cent of Alro’s shares. Now, after the sale, Vimetco will control 54.19 per cent of the company.

“Alro believes that the transaction made by its shareholders will bring medium and long-term benefits to both the company and its investors by significantly improving the liquidity and visibility of the company on the capital market,” reads a note to investors Alro issued on December 19.


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EDITED BY : DEBANJALI SENGUPTA 2MINS READ

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