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February 26, 2021

Transgaz increases number of shares, reduces their value to re-bring company to public’s attention

Transgaz is proposing that the Extraordinary General Meeting of Shareholders increase the number of shares on June 23, while decreasing their nominal value, in order to re-bring the company to the attention of the public and to increase the market liquidity of the shares.
‘Dividing the nominal value of a share represents the operation that entails the reduction of the nominal value of the share, while increasing the number of shares in line with the dividing ratio, with the share capital remaining unchanged. Such an action re-brings the company to the public and investors’ attention and enables the shares of the company to become more affordable to them and their liquidity on the market to increase,’ the company’s representatives say.
These showed that, at this time, Transgaz has a number of 11,773,844 shares with nominal value of 10 lei, and after the reduction the number of shares will be 117,738,440 and the nominal value will be 1 leu. The price of a share will decrease from 270 lei (the average price in 2015 was considered for exemplifying) to 27 lei. A share means one vote in the General Meetings of Shareholders. The company’s capitalization will stay the same: 3,261,354,788 lei.
An analysis into the capital market in Romania has found that 67pct of the shares traded on the regulated market of the Bucharest Stock Exchange are traded at a price lower than 2 lei per share.
The Transgaz share has the highest trading price, followed by Erste Bank – some 110 lei. ‘The high trading price of the Transgaz share has a negative influence on both the number of transactions, as well as on the volume traded,’ reads the document convening the said meeting.
Transgaz is the national gas transmission operator. The Romanian state owns, through the Ministry of Economy, a 58.5pct stake in the company, the remaining shares being traded on the Bucharest Stock Exchange.

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