With one exception, though, SIF Banat-Crisana, which this year has the most ambitious program, planning to take part in the privatization of the Romanian Postal Company and to set up two vehicles in order to make better use of its real estate and hotel wealth.
This year four of the five SIFs plan to sell assets in their portfolios worth a total of RON621 million, according to the draft budgets published by SIF Banat-Crisana (SIF1.RO), SIF Moldova (SIF2.RO), SIF Transilvania (SIF3.RO) and SIF Oltenia (SIF5.RO). SIF Muntenia has yet to publish its draft budget for 2013.
The value of disinvestments budgeted by the four SIFs is 2.3 times higher than new investments scheduled for this year. So 2013 will be similar to 2012, when SIFs sold significant assets, especially bank holdings, in order to get high profits. In 2012 the value of disinvestments made by the four SIFs was RON730 million, with the biggest seller being SIF Transilvania, which last year sold RON283 million worth of assets.
SIF Banat-Crisana (SIF1.RO) this year took the capital market by surprise by announcing it wanted to take part in the privatization of the Romanian Postal Company and that it wanted to move its real estate and hotel assets into two vehicles, controlled by SIFs, which it would then list on the stock exchange.
“Banat-Crisana is the first SIF under the direct control of a businessman, and just four months after Dragos Bilteanu took over as chairman, we witness a change in management style from a conservative attitude to a surprisingly active management,” said Mihai Caruntu, head of the capital market research department within BCR bank.
Businessman Dragos Bilteanu, best known for investments in energy and real estate, took over management of SIF1 in December 2012 from Ioan Cuzman, who had run the company for almost twenty years. His proposals come just one month after he announced he wanted to take control of SAI Muntenia Invest, the administrator of the RON1 billion assets of SIF Muntenia, a deal that would make the businessman the most influential SIF chairman.
“The intention of SIF Banat-Crisana to take part in the privatization of the Romanian Postal Company is based on the opportunity to invest in a leader on the Romanian postal services market, with a big potential to grow on new segments,” according to the activity program proposed by SIF Banat-Crisana to shareholders and signed by the chairman of the board of directors and general manager Dragos Bilteanu.
According to analyst Mihai Caruntu, if it wants to take part in the privatization of the Postal Company, SIF Banat-Crisana needs a financial investor which would contribute money to the privatization, given that the amounts it has available are not enough. The company would also need an experienced investor in the sector of activity of the Postal Company.
Depending on the dividend proposal that the shareholders approve, SIF Banat-Crisana plans new investments of RON48 million and asset sales of RON124 million in 2013, if the profit remains with the company.
For 2013 SIF Moldova has budgeted a net profit of RON86.6 million, down 37% on that recorded in 2012. The company plans to continue its investment program in 2013, having budgeted investments of RON50 million and asset sales of RON135 million.
SIF Transilvania has budgeted the most significant asset sales program this year – RON263 million, as well as the biggest new investments out of all SIFs, of around RON111 million. SIF Transilvania plans to obtain revenues of RON263 million this year from the sale of stakes registered in its portfolio at a cost of RON89.5 million, expecting a profit of RON173 million (EUR39.3 million) from disinvestments, according to the draft budget for 2013 put to the shareholders’ vote on April 20.
Overall, SIF Transilvania expects a net profit of RON150 million for this year, 29% less than the record-high profit recorded last year, of RON212.2 million. Overall revenues are set to decline 6.3% this year, to RON300 million.
SIF Oltenia is the only SIF that has budgeted a profit increase this year, a 2.2% rise against last year’s RON84 million profit.
This year SIF Oltenia plans to sell RON123 million worth of assets and to conduct new investments worth RON70.4 million.
(English version by Daniela Stoican)