The fund’s shares fell 14% after the general meeting of shareholders decided against dividend payment.
Dragos Bilteanu, president of SIF Crisana-Banat managed in the general meeting of shareholders to obtain the decision of not paying dividends from last year’s profit, although 42.5% of shareholders voted in favor of dividends. But the shareholders who support Bilteanu decided to keep the profit within the company, which is a first for regional investment funds SIFs.
SIF Crisana-Banat has been left with RON100 million available for investments, whereas other SIFs have to sell some of their portfolio to get the liquidity they need to pay dividends.
At 35, Bilteanu has become the most powerful SIF president. He manages a wealth of RON1.41 billion (EUR325 million) under his management and in the five months since he took over as president of the fund he has already distanced himself from the policy of former SIF heads.
Bilteanu wants SIF Banat-Crisana to participate in the privatizations of major state-run companies and give up traditional stock exchange investments, which had so far accounted for the bulk of stock exchange investments, but in order to meet this goal, he needs more money. That is why Bilteanu is also seeking to take control of the assets of RON1.18 billion (EUR272 million) of SIF Muntenia by taking over SAI Muntenia Invest, which manages these assets.
He has also decided not to pay dividends to the shareholders, a first since SIF1’s listing.
The decision upset stock exchange investors, who did not expect not to get dividends from SIF1, so the shares fell 14% from April 17, when the shareholders voted against the payment of dividends, until the present.
Privatization of Posta Romana, a priority
Ahead of the shareholders’ vote, Bilteanu presented an ambitious in investment plan in order to persuade investors to approve as low a ratio of dividend payment as possible. Participating alongside a group of investors in the privatization of Posta Romana is one of the fund’s investment plans for 2013. The deadline for submitting the offers for Posta Romana privatization has been extended until May 28.
“We stand by our intention to take part in the privatization of the Romanian Postal Company, details on the sum and on partners will be revealed in due time. We are mainly considering companies eligible according to the tender documents [criteria], financial investors mainly. We are also looking at potential partners from the sector of postal and courier services,” said representatives of SIF Crisana-Banat.
Also in focus: energy sector
SIF Crisana-Banat plans to take part in the privatizations of state-run companies in the energy distribution sector, and use the opportunities that can emerge from the reorganization and liquidation of companies in the private sector, which the investment fund could bring back to their feet.
“Depending on the investment ability of SIF Banat-Crisana and on the size of the investment needed, we will be able to get involved on our own or together with other institutional or financing investors,” SIF Crisana-Banat representatives added.
Bilteanu has also informed the shareholders that he plans to make the fund’s portfolio more efficient by transferring companies with real estate assets and hotels where SIF Crisana-Banat holds majority stakes into two holdings – SIF Real Estate and SIF Hotels.
(English version by Daniela Stoican)