COMPANIES ECONOMY FINANCE&BANKING

BVB increases share capital by 3.7 million lei to merge with SIBEX

The Bucharest Stock Exchange (BVB) is increasing its share capital by 3.7 million lei in order to merge with the SIBEX Sibiu Stock Exchange, reads an announcement posted by BVB on its website.

“The Board of Governors of Bursa de Valori Bucuresti S.A., in the meeting held on May 30, 2017, adopted the decision to establish the final value of the share capital increase of BVB., as it results following the implementation of the operations mentioned in the Merger Project between the Company and SIBEX – Sibiu Stock Exchange S.A.,” according to the post.

BVB will issue a total no. of 375,048 new shares, with an individual nominal value of 10 lei that are assigned to SIBEX shareholders.

“The BVB share capital will be raised from the initial value of 76,741,980 lei, representing a no. of 7,674,198 shares, with a nominal value of 10 lei, to the value of 80,492,460 lei, representing 8,049,246 shares of a nominal value of 10 lei,” according to BVB.

The BVB has reported a Q1 2017 net profit of 2.83 million lei, up 6,975 percent from Q1 2016.

“Consolidated net profit in Q1 2017 amounted to 2.83 million lei, significantly increasing compared with the net result obtained in the same period of the previous year (Q1 2016: 0.04 million lei) with a net margin of 31 percent, while 89 percent of the net profit being obtained from the group’s trading segment,” according to the latest BVB quarterly report posted on the BVB website.

The operating profit of the BVB Group amounted to 2.96 million lei, seven times higher compared to the same quarter of 2016, as a result of a 42-percent increase in operating revenues, while operational expenditures advanced by only 1.6 percent.

“Operating expenses amounted to 6.23 million lei, were up only 1.6 percent compared with the first three months of last year, as a result of a decrease in personnel expenses by 4 percent, an increase in expenditures on services rendered by third parties, generated by the preparation of the BVB-SIBEX merger and the increase in promotion and marketing expenses, amid the intensification of the capital market promotion activities included, in other operating expenditures,” according to the report.

The net financial revenues in the first quarter of 2017, of 0.45 million lei, mainly derived from interest on financial assets placed in government securities and bank deposits, showed a positive evolution over the same period last year (Q1 2016: 0.25 million lei – net expense), being less affected by adverse unrealized exchange rate fluctuations in the revaluation of foreign currency financial instruments registered in the first quarter of 2017, of 0.15 million lei, compared with the same period of the year 2016 when they were of 0.88 million lei.

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