Conferința BURSA - Dezvoltarea Romaniei 2018
BURSA 07.11.2017

ADINA ARDELEANU, ANDREI IACOMI (translated by Cosmin Ghidoveanu)
 
mărește imaginea
     * Brokers: The depreciation of EL, amid the drop in the market, as well as due to deal with the FP
     * Adrian Simionescu: "Investors feel the price at which EL has acquired from the Proprietatea Fund its stakes is very high and unjustified"
     * The FP-Electrica deal, among the topics of the PNL vote of no-confidence against Energy minister Toma Petcu
       It seems the stock market did not take kindly to the approval of the transaction by which "Electrica" acquires the stakes of the Proprietatea Fund in its branches, at least for now, because EL stock dropped abruptly, immediately after the general shareholder meeting of October 26th.
     Electrica shares yesterday reached 12.34 lei/share, down 4.78% over October 26th and 4.34% below the beginning of October. Also, the BET-NG index of the energy stocks fell 0.83%, from the beginning of last month, while the main BET index fell 1.45%.
     Brokerii blame the depreciation of EL on the overall market drop, as well as on the deal with FP.
     Adrian Simionescu, CEO Vienna Investment Trust, told us: "The depreciation of EL shares is part of the recent overall market trend. This trend came on one hand due to overall profit-taking, and on the other hand because of the fiscal instability which the Government has promoted and which has induced some worries among investors about the results which might be seen next year, in terms of the stability of companies in the portfolio.
     On the other hand, the price at which EL has acquired from The Proprietatea Fund (FP) its stakes is considered by investors very high and unjustified. For that reason, many people have decided to sell shares in the company. From a strategic point of view, it is beneficial for the company that it has acquired those stakes, even though they are minority ones, but the price they have paid is too high compared to what they were worth, which means investors punished it".
     In the opinion of Marcel Murgoci, director of operations at Estinvest, the main reason for last week's depreciation of the price of EL is connected to the overall market drop, which also caught the electricity company in it: "That element is more important than the fact that the company has decided to buy from the Proprietatea Fund the holdings in its subsidiaries, because the decision is still in effect and yet, today (ed. note: yesterday), the EL stock rose.
     It is clear that a large amount of money will exit the company and investors were probably unhappy, because that could have gone towards dividends, meaning that some of them sold their shares, especially since there were recently elections for the Board of the Company as well. Still, that effect is less important than the generalized drop of the market as a whole".
     On October 26th, the shareholders of Electrica approved the acquisition of the entire stake that FP held in the share capital of the branches of EL, for 752,031,841 lei.
     The deal will not affect the right to dividends of the Proprietatea Fund for the financial year 2016, as it has already been approved at the level of each branch. The total dividends amount to 97,968,159 lei.
     As the price paid is bigger than what Electrica was willing to pay in the previous years, some energy market specialists claimed that the price that was paid now to FP was too high.
     In spite of this, the CEO of the company, Cătălin Stancu, as well as the Minister of Energy said that the deal that was approved and completed, on November 1st, is the best one possible for the company.
     Cătălin Stancu was asked about the reasons for this deal, last week in the Parliament, in the Investigation Commission for the activity of the ANRE.
     He explained that the dividends owed to the Proprietatea Fund are not included in the transaction: "They are rights earned and granted to the shareholders, including to the state, seven months ago, before any decision concerning the transaction was made.
     With or without the transaction, all the shareholders, including the Fund, will collect their dividends. The answer is that dividends, technically are not included in the price".
     Cătălin Stancu explained that the transaction for the minority stakes was an obligation assumed upon the listing of the company: "At the date of the IPO, there were some obligations to use the capital, which the company had assumed. What is more important is that this a decision of economic opportunity. When you have cash, like Electrica does, and there have been criticisms lately over the good use of that capital, you need to try and use it to produce the highest return. Based on the analyses made with four consultants, the use in the deal with the Proprietatea Fund would give the best return possible given the risk and opportunity conditions we currently have available.
     The capital use is not limited only to the transaction with the Fund because at the present time, we are financing all the distribution branches with approximately 150 million Euros for the investment programs".
     BURSA recently reported that Electrica was now willing to offer 60 million lei more for the stakes of the Proprietatea Fund in Electrica, compared to the amount it was willing to pay one year ago.
     In March 2016, the firm offer of Electrica SA was 790 million lei, while the Proprietatea Fund wanted 875 million lei. According to the talks at the time, Electrica was not willing to grant the Proprietatea Fund the right to receive dividends as well.
     Mr. Stancu said that he was not familiar with the details of the negotiations that had been held until last year, because he had only been with Electrica for a year: "With all due respect, I think that this is a comparison that deserves attention. We are comparing a transaction that failed with one that succeeded. Therefore, they can't be compared. This is a complicated negotiation and I don't think anybody would be willing to say that a certain price is the perfect outcome of a negotiation. It is clear that a better result is always possible. At the present time, the maximum profitability came from this transaction and the shareholders' decision was unanimous, with 75% of 75% present. As a result, the shareholders, of which many were investment funds or banks, confirm that such an investment was also the appropriate option for them".
     The head of Electrica was asked why he didn't go for the option of a share capital increase at the subsidiaries, to see whether the Proprietatea Fund would come in with money to keep its stakes.
     He said that in doing so he ran the risk of a lawsuit from the minority shareholder: "Any loan we extend to our subsidiaries can be converted into a contribution to the share capital. What matters is for the funding to get done. The loan or the contribution to the capital do not differ much in terms of profitability. And to give you a direct answer, there are legal impediments when you start a share capital increase, when you have a minority shareholder, who may not agree to such an operation. Fundamentally, you are asking them to come up with cash to keep their stakes, but there is also the risk that they are going to challenge the operation in court. That risk would have affected the funding of the investments, which is Electrica's main goal at the present time".
     The FP-Electrica deal is one of the subjects of the motion of censure by the PNL against Energy minister Toma Petcu.
     PNL members said: "The acquisition by Electrica of the 22% block of shares owned by the Proprietatea Fund in its four branches represents a rushed decision which removes the 163 million Euros from the budget of the company, which affects the investments in the system that are so sorely needed.
     Through the Ministry of Energy, the Romanian government holds 48.78% of Electrica. 
 

 
Readers' comments    [ add a comment ] 
Trimite părerea ta.
Nume (maxim 50 caractere)
E-mail (optional)
Titlu (maxim 50 caractere)
Mesaj
 
REGULAMENTUL MESAJELOR
Acord
Prin trimiterea opiniei ne confirmați că ați citit regulamentul de mai sus și că vă asumați prevederile sale !
Aceeasi sectiune (English Section)
BECAUSE AN AGREEMENT ON THE PRICE COULDN'T BE REACHED,
Piaţa de Capital
     Principalii indici bursieri de pe Wall Street, New York, au închis ședința de tranzacționare de ieri pozitiv.  click să citești tot articolul
Ediții precedente
Newsletter Facebook Twitter YouTube LinkedIn RSS
Jurnal Bursier
21.09.2018
BVB
     * Rulaj de 47 milioane de lei, peste media anului
     
     Piața principală a Bursei de Valori București (BVB) a încheiat ședința de tranzacționare de joi preponderent în teritoriul pozitiv, opt dintre...  click să citești tot articolul
20.09.2018
BVB
     * Scădere de 0,53% pentru BET-NG
     
     Volumul de tranzacționare înregistrat în ședința de la mijlocul săptămânii a Bursei de Valori București (BVB) a fost de 33,45 milioane de lei, dintre care...  click să citești tot articolul
20.09.2018
BURSELE DIN LUME
     Bursele din Europa au urcat ieri, pe fondul câștigurilor din sectorul materiilor prime.  click să citești tot articolul
19.09.2018
BVB
     * Toți indicii bursieri au închis în creștere
     * Tranzacții cu aproape 3% din MedLife, efectuate pe piața "deal"
     
     Lichiditatea înregistrată în ședința de tranzacționare de ieri la...  click să citești tot articolul
19.09.2018
BURSELE DIN LUME
     Piețele europene au urmat un curs mixt ieri, după ce administrația americană a decis să impună taxe vamale de 10% pe importuri chinezești de 200 de miliarde de dolari.  click să citești tot articolul
18.09.2018
BVB
     * Rulaj de 42 milioane de lei, în apropierea mediei acestui an
     
     Cinci dintre cei nouă indici ai Bursei de Valori București (BVB) au încheiat prima ședință de tranzacționare a săptămânii ușor în...  click să citești tot articolul
Cotații Internaționale

Curs Valutar

Curs valabil din data de 20 septembrie 2018
1 Dolar australian...
1 Leva bulgărească...
1 Dolar canadian....
1 Franc elvețian...
1 Coroană cehă...
1 Coroană daneză...
1 Liră egipteană...
1 Euro...
1 Liră sterlină...
100 Forinți maghiari...
100 Yeni japonezi...
1 Leu moldovenesc...
1 Coroană norvegiană...
1 Zlot polonez...
1 Rublă rusească...
1 Coroană suedeză...
1 Liră turcească...
1 Dolar S.U.A...
1 Rand sud-african...
1 Real brazilian...
1 Renminbi chinezesc...
1 Rupie indiană...
100 Woni sud-coreeni...
1 Peso mexican...
1 Dolar neo-zeelandez...
1 Dinar sârbesc...
1 Hryvna ucraineană...
1 Dirham emirate arabe...
1 Kuna croată...
1 Bahtul thailandez...
1 Gram aur...
1 DST...
AUD
BGN
CAD
CHF
CZK
DKK
EGP
EUR
GBP
HUF
JPY
MDL
NOK
PLN
RUB
SEK
TRY
USD
ZAR
BRL
CNY
INR
KRW
MXN
NZD
RSD
UAH
AED
HRK
THB
XAU
XDR
2.8891
2.3785
3.0794
4.1133
0.1820
0.6237
0.2218
4.6519
5.2505
1.4382
3.5403
0.2370
0.4849
1.0836
0.0599
0.4496
0.6375
3.9743
0.2747
0.9619
0.5797
0.0550
0.3541
0.2121
2.6477
0.0393
0.1417
1.0821
0.6262
0.1227
153.7281
5.5764
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
click aici pentru cursurile pieței valutare - istoric
English Section
14.09.2018
MREPORT BY TRANSPARENCY INTERNATIONAL
     Globalization has also brought with it an unpleasant effect: cross-border corruption. According to the intermediate report Exporting Corruption for the year 2018, a document drawn up by the organization Transparency International, there is a practice among powerful foreign companies of bribing the public servants of another country when they want to enter the local market.  click here to read the entire article
07.09.2018
DEPUTY VIRGIL POPESCU, VICEPRESIDENT OF THE COMMISSION FOR INDUSTRIES AND SERVICES
     The offshore law will once again reach the Commission, in one or two weeks, according to Mr. Virgil Popescu, the vice-president of the Commission for Industries and Services, the Chamber of Deputies.  click here to read the entire article
05.09.2018
MRS. FIREA'S VERBAL BOMBS
     * "There have been attempts for the prefect to be made a scapegoat"
     * "The support from the government wasn't much to talk about, so if it were withdrawn, there wouldn't be much of a difference"
     Bucharest's General Mayor was heard on Tuesday as a witness by the prosecutors of the General Prosecutor's Office in the case concerning the events which happened on August 10th in Victoriei Square. Before going into the Prosecutors' Department building, Gabriela Firea said she stood by her statements made immediately after the meeting of the National Executive Committee of the PSD and said: "I always speak based on facts, not just in this particular case, but in other areas as well, including politics. I will be answering to the questions of the prosecutor who contacted me and told me I was supposed to be heard in the case which is now being investigated concerning the intervention of the gendarmes on August 10th".  click here to read the entire article
31.08.2018
     The particularly hot weather and the conditions of extreme draught in Europe have brought to light terrible warnings from the past.
     Associated Press recently wrote that in the riverbed of the Elba in the Czech Republic have resurfaced the giant stones known as "the hunger stones", which have indicated over time, the coming of hard times.
     "When you see me, weep", is written on one of these stones, which seems to be considered the best hydrological benchmark in Europe. The inscription is in German and dates back to 1616.
     A detailed analysis of the stone inscriptions was published by the Czech researchers in the "Climate of the Past" magazine in 2013 (author's note: "Droughts in the Czech Lands, 1090-2012 AD", April 2013).  click here to read the entire article
29.08.2018
     * Claudiu Cazacu, XTB România: "United States companies have posted results that even exceeded the analysts' expectations, which were already for 2-figure profit increases"
     * Liviu Moldovan, financial analyst: "Currently, investors have a «blind» faith in the stock markets, in general, and in that of the US, in particular"
     For the first time in the history of the American markets, Nasdaq has surpassed the psychological level of 8,000 points.
     In the August 27 session, the Standard & Poor's 500 (S&P 500) index also reached an all time high, ending the trading session at almost 2,897 points.  click here to read the entire article
27.08.2018
     The capital market was marked, last week, by a number of controversial statements tied to the listing of Digi Communications, starting from the statements made recently by Darius Vâlcov, state advisor on the team of the prime-minister, who wrote on his Facebook page that he has asked the Financial Oversight Authority (ASF) if it was true that the book value of the Digi shares was 1 leu and 8 bani, and pointed out that at the time of the IPO, the shares of Digi were listed at 40 lei and are currently priced at 28 lei (30% down) and keep going down.  click here to read the entire article
23.08.2018
     Angela Merkel inaugurated the highway in December 2005, less than a month after she became chancellor of Germany.
     The highway was built on the territory of the former East Germany, connects Lubeck and the Polish border, after the junction with A11, and goes through the electoral precinct of chancellor Merkel.  click here to read the entire article
20.08.2018
THE NATIONAL MINERAL RESOURCES AGENCY, IN A NOTIFICATION TO THE PRIME-MINISTER:
     The Romanian government has lost over 8 billion lei, between 2006-2018, following the failure to update the royalties paid by the oil and gas companies, says Gigi Dragomir, the president of the National Mineral Resources Agency (ANRM), in a report sent to the prime-minister.  click here to read the entire article
15.08.2018
      * (Interview with Radu Grațian Ghețea, President - CEO of CEC Bank)
     In banking there are many risks and that is why banks need to be flexible and have as diverse an exposure as possible, which take the market circumstances at the time into account, says Radu Grațian Ghețea, President and CEO of CEC Bank. He told us, in an interview: "We have to adapt to what is happening in the market and we need to do things in such a way that the economic activity and that of the bank both function properly. If we're going with the idea that we want to eliminate every risk, then we'll just stop doing anything. For instance, we have been and we are a bank which heavily funds agriculture, which also means animal husbandry. A few years ago, our exposure to the aviculture sector was rather significant, and when the avian flu came we had to cover some non-performing loans on that segment. Now that the avian flu is done, we are facing the swine flu. What should we do, stop lending?"
     Reporter: Lately, there have been opinions from some experts who are saying that there is a wave of non-performing loans of the ones taken out by the First Home Program. What is your comment on these statements?  click here to read the entire article
08.08.2018
     * (Interview with Laszlo Diosi, OTP Bank CEO)
     Reporter: How would you describe the banking market, at the present time?
     Laszlo Diosi: Even though there are plenty of challenges, there are also many opportunities for the Romanian banking system. The lessons of the financial-economic crisis have resulted in a better regulated framework, stable, transparent and predictable. The guiding line of the policies developed by the authorities that are qualified, but in particular by those with a regulatory and oversight role has been characterized by a balance between profitability and systemic safety.
     But there is no shortage of challenges. We are talking here about challenges which concern the digitalization of the banking system and the national and international legislation. The entire system needs to align with complex and sometimes confused regulations.
     Recorded by Emilia Olescu  click here to read the entire article
31.07.2018
     * (Interview with Dan Paul, the president of the Association of Brokers)
     The management of the Bucharest Stock Exchange (BVB) needs to find out from brokers whether Romania truly needs a derivatives market, says Dan Paul, the president of the Association of Brokers, who was kind enough to grant BURSA an interview.  click here to read the entire article
27.07.2018
THE DĂNCILĂ GOVERNMENT AFTER SIX MONTHS
     Now we know why prime-minister Dăncilă was in a hurry to announce the activity report for the first six months at the helm of the Romanian government: the nice tale of the hike of pensions and salaries wasn't supposed to be overshadowed by the evolution of budget expenses, whose increase has led the deficit of the consolidated general budget to 1.61% of the GDP, from 0.88% after the first five months of the year.  click here to read the entire article
23.07.2018
BECAUSE AN AGREEMENT ON THE PRICE COULDN'T BE REACHED,
     The public offer started by Vimetco and Conef for a stake of at most 53.77% of the shares of Alro Slatina (Alro) has been unsuccessful, as the issuer announced that due to the unfavorable market conditions, the shareholders, company and underwriters couldn't agree on a price for the volume of 383.79 million shares put up for sale.  click here to read the entire article
23.07.2018
ECONOMIC ANALYST AURELIAN DOCHIA PREDICTS:
     * According to Eurostat, Romania has the biggest governmental deficit in the EU
     The hike of some taxes, in the near future, is unavoidable, according to economic analyst Aurelian Dochia.
     His statement comes as, in the first quarter, the government's deficit has seen an increase over the last quarter of 2017, according to data by the European Statistics Office (Eurostat).  click here to read the entire article
13.07.2018
Russia World Cup
     The final tournament of the World Football Cup will end with a gala representation, the duel between Croatia and France. France, the with the most expensive players in the tournament, has met the expectations, Croatia is the biggest surprise the of the competition.  click here to read the entire article
.