SIF Banat wants to take over SIF Muntenia. At stake: assets worth RON 2.4 bln

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SIF Banat-Crisana (SIF 1) wants to take over Muntenia Invest, the asset administrator of SIF Muntenia (SIF 4), which is now in conflict with the Board of Shareholders’ Representatives of SIF Muntenia elected last July. The transaction is agreed by Grupul Financiar Muntenia, which controls Muntenia Invest. The intention to take over 99.96 pc of Muntenia Invest shares has been notified to the National Securities Commission (CNVM) and the Competition Council, according to a document sent Friday by SIF Banat-Crisana to the Bucharest Stock Exchange. SIF Banat-Crisana mentions in the communiqué that, until the completion of a transaction, “the conditions in which it should take place remain confidential.” According to zf.ro, if the transaction is concluded, it might be the first step towards the merger of the two SIF companies with cumulated assets exceeding RON 2.4 bln (EUR 545 M), with a cumulated market value exceeding RON 1.4 bln (EUR 320 M) and over 10 million shareholders, or it might provoke the biggest lawsuits in the history of the Romanian stock exchange. SIF Muntenia (SIF4) reported for last year a 47.5 pc increase of total incomes, to RON 290.34 M (EUR 65.1 M) and 2.7 pc lower expenses of RON 110.63 M (RON 24.8 M). The intention of SIF Banat-Crisana to take over the administration of SIF Muntenia comes against the background of a conflict that irrupted between Muntenia Invest and the Board of Shareholders’ Representatives of SIF Muntenia, which were able in July to change the members of the Board and imposed their representatives, during a marathon General Meeting of Shareholders (AGA) that lasted over 32 hours. At that time, the respective group of shareholders controlled almost 16.9 pc of SIF Muntenia. At stake in the AGA for electing the Board of Representatives was the right to negotiate the contract with the administrator of SIF Muntenia. Iaciu is the biggest shareholder in SIF Muntenia and the owner of the Doraly trading complex of Afumati.