If shareholders refuse the sale, then the board will request the listing of BCR.
Austrian Erste announced Wednesday that it has concluded in principle an agreement with four of the five SIFs (Banat-Crisana, Transilvania, Muntenia and Oltenia) for the purchase of a 24.12% stake in BCE for around EUR435 million.
SIF Transilvania issued the meeting summoning Thursday morning, presenting the terms agreed with Erste.
The fund would collect EUR26 million cash and receive Erste shares worth EUR82 million (slightly more than 1% of the Austrian bank’s share capital), in exchange for a 6% stake in BCR. Erste will issue new shares to make the exchange with BCR shares.
Erste Bank took over in 2006 a 61.88% stake in BCR, for a total EUR3.75 billion, from the state, the European Bank for Reconstruction and Development and International Finance Corporation.
A month later, it raised its participation to 69.1% through an offer made to BCR employees. The SIFs have been holding a combined 30.12% stake in BCR (SIF Banat Crisana, SIF Moldova, SIF Transilvania, SIF Muntenia – each 6%; SIF Oltenia – 6.12%).
Under the privatization deal, Erste was supposed to float BCR’s shares by October 2009 at the latest. However, the Austrian bank and the SIFs have agreed to delay the procedures until 2011.
The agreement announced Wednesday says that the SIFs lose the right to request the listing of BCR, as well as the right to collect special dividend. Erste added that SIF Moldova (SIF2.RO) too can join the agreement.