Banca Transilvania plans to issue 352.7 million new shares with a face value of RON1 to be distributed to its stockholders.
The proposal is subject to shareholder approval at a meeting scheduled for 29-30 April.
The shareholders are also expected to vote on a program to repurchase up to 0.77% of the bank’s shares. Banca Transilvania proposes a maximum buyback price of RON2.5 a share (or RON42.5 million for the entire stake).
At the current market price of RON1.702 a share, the stake is valued at RON28.93 million.
Banca Transilvania has a widespread ownership, with European Bank for Reconstruction and Development holding a 14.61% stake, followed by Bank of Cyprus with 9.9%.
The bank reported a net profit of RON374.9 million in 2013, up 17% year-on-year. The bank’s assets rose 8.4% to RON32.06 billion. (EUR1=RON4.4693)