“The first item, the buyback of 10% of shares, passed, but the second one was rejected. The second item was rejected by some of the largest shareholders, Mountbay and Lido, so it fell through,” the sources said.
Cyprus-registered Mountbay Limited is associated with The Nova Group Investments Romania in Zeta SPV Development Bucuresti. The Nova Group is owned by businessman Dan Adamescu, while Zeta SPV is managed by Alexander Adamescu, Dan Adamescu’s son. Mountbay holds 32.9% in Intercontinental.
Dan Adamescu indirectly holds 32.03% in Intercontinental, through insurer Astra and The Nova Group Investments.
Lido holds an 11.89% stake in Intercontinental, according to the latest reports.
The 10% buyback approved Monday has a ceiling of RON8.4 million.
Intercontinental shares are currently traded at RON0.0969, slightly less than their face value of RON0.1. Should all shares be bought at market price, the 10% stake would be worth RON8.07 million. (EUR1=RON4.323)