Aluminum producer Alro Slatina, one of the biggest industrial groups in Romania, has hired international consultants to advice on a potential capital market transaction aimed at increasing the company’s market value and the liquidity of its shares. The company confirmed this information after media reports.

Ziarul Financiar wrote on Tuesday, May 8, that Alro has hired UBS and Deutsche Bank to advise on a potential transaction.

“Consistent with the company’s continued approach to the improvement of the liquidity and performance of the company’s shares on the Bucharest Stock Exchange - BSE, the company confirms that it has engaged consultants to advice in this connection,” reads an announcement Alro sent to the Bucharest Stock Exchange on Wednesday, May 9.

The company’s representatives added that they can’t predict the outcome of such consultations, which may or may not result in a transaction. This also depends on market conditions and the interests of its shareholders.

Alro posted sales of EUR 538 million in 2017, up 16% over the previous year, and a net profit of close to EUR 70 million, five times higher than in 2016. The company has a market capitalization of some EUR 650 million after its shares almost tripled within the last year.

Netherlands-based group Vimetco, owned by Russian investor Vitali Machitski, controls 84.2% of Alro’s shares, and Fondul Proprietatea holds 10.2%. The free-float is thus only 5.6%, which makes the shares illiquid.

editor@romania-insider.com