After SIF Banat-Crisana (SIF1.RO) reported the first acquisition of a 5% stake in SIF Muntenia (SIF4.RO) in February, a series of reports on Friday revealed new SIF acquisitions in each other, highlighting a control structure over 5.4 billion lei (EUR1.2 billion) assets. SIF Muntenia was reported as owning 5% in SIF Moldova (SIF2.RO), while SIF Moldova in turn owns 5% in SIF Muntenia and SIF Oltenia (SIF5.RO) each.
SIF Banat-Crisana, controlled by Dragos Bilteanu and SIF Moldova, whose largest shareholders include Banca Transilvania (TLV.RO) and, more recently, Raiffeisen, were the first to buy stake in the other SIFs, which gives them significant sway in the decision-making process. The four SIF will be able to co-ordinate strategies in the future and their management teams will be able to support each other against takeover attempts from the outside.
SIF Transilvania (SIF3.RO) is the only one of the five that has not got into this game yet.
“The reason why these acquisitions between SIFs are going so fast is that a restriction on buying had been in place until recently and once the law became permissive in this regard it was only normal to see SIFs buying into each other,” said Mihai Chisu, broker with brokerage firm Swiss Capital.
“There are various reasons for the acquisitions and they include the need for diversification, for consolidation, the value that a SIF assigns to the other SIFs, the dividends they pay etc. We can also see connections between SIFS through their joint management and these acquisitions are normal, they are not an exception.”
(English version by Loredana Fratila-Cristescu)