Local brokerage firm Swiss Capital successfully placed 241 million shares of Romanian aluminium producer Alro Slatina through an accelerated book build (ABB), Ziarul Financiar announced.

The sold shares represent a stake of nearly 34% in the company and the value of the deal amounted to RON 723 million (EUR 155 million). The transaction closed at a price of RON 3 per share, 11.5% under the Alro’s closing price on December 18.

This summer, Alro’s majority shareholder Vimetco attempted to sell a 54% stake in Alro through a secondary public offering (SPO), but failed. The targeted price range in the SPO was RON 3.5-4.

Alro ended the first nine months of 2018 with a net profit of RON 203 million (EUR 43.6 mln). Russian group Vimetco and affiliated company Conef held over 87% of Alro’s shares before this transaction. Vimetco will control 54.19% of the company after the sale.

“Alro believes that the transaction made by its shareholders will bring medium and long-term benefits to both the company and its investors by significantly improving the liquidity and visibility of the company on the capital market,” reads a note to investors Alro issued on December 19.

Romanian aluminium maker Alro to borrow EUR 70 mln for working capital, investments

editor@romania-insider.com

(photo source: Alro.ro)