The proposition to reduce the share capital came from businessman Adrian Andrici, a significant shareholder of Impact Developer&Contractor.
Andrici said the reason behind his proposition is the surge in the company’s losses and the “need to bring the shares’ face value at a level meant to reflect their current trading value on the capital market.”
Over the last three years, Impact has constantly registered losses. According to Bucharest Bourse data, the company’s losses amounted to some RON120 million in the past two years (under International Financial Reporting Standards (IFRS)). In 2010, the firm reported losses of RON17.5 million (under Romanian Accounting Standards – RAS).
The company’s first-quarter revenues doubled to RON5.6 million, from RON2.8 million in the same period in 2012, but its losses increased to RON5.5 million from RON4.3 million.
Businessman Gheorghe Iaciu, majority shareholder of regional investment fund SIF Muntenia (SIF4. RO), bought a 23.22% stake in Impact in March for RON6.4 million and became its major shareholder. The company’s shareholders also include businessman Adrian Andrici (10.69%) and investment management company East Capital, which owns a 10.1% stake via Cyprus-based Salink Limited.
On the Bucharest bourse last Friday, Impact traded down 1.96% to RON0.16 a share. (EUR1=RON4.5224)