The proposal is subject to shareholder approval at a BCR meeting due November 14.
If approved, the operation would entail issuing 6.18 billion new BCR shares at a face value of RON0.1 a share.
Erste would contribute with some RON450 million (EUR105 million) to the capital boost, while the five minority shareholders SIFs would each pitch in RON38.6 million (EUR9 million).
The Austrian bank owns 69.4% in BCR, while the five SIFs hold around 30% of its shares.
Last month, Erste said it has reached an agreement in principle with four of the SIFs to acquire 24.12% in BCR for EUR435 million in cash and stock via a series of transactions. The move will increase Erste’s stake to 93.5%, while giving the bank the votes it needs to approve the capital increase.
According to Erste officials, the capital increase is necessary to maintain non-performing loans coverage ratios at adequate levels.
Earlier this week, Erste said it would partially write down its Romania-related goodwill by EUR700 million pre-tax, as part of a larger package of one-time charges expected to trigger a loss of about EUR920-EUR970 million for the first nine months.
The news sent Erste’s shares spiraling down 14% in Vienna and Bucharest alike. At around 15:00 Wednesday, Erste traded down 0.9% on the day at RON77.3 a share in Bucharest. (EUR1=RON4.3217)