Russian owner sells 34% of Romanian aluminium maker Alro

Local brokerage firm Swiss Capital successfully placed 241 million shares of Romanian aluminium producer Alro Slatina through an accelerated book build (ABB), Ziarul Financiar announced.

The sold shares represent a stake of nearly 34% in the company and the value of the deal amounted to RON 723 million (EUR 155 million). The transaction closed at a price of RON 3 per share, 11.5% under the Alro’s closing price on December 18.

This summer, Alro’s majority shareholder Vimetco attempted to sell a 54% stake in Alro through a secondary public offering (SPO), but failed. The targeted price range in the SPO was RON 3.5-4.

Alro ended the first nine months of 2018 with a net profit of RON 203 million (EUR 43.6 mln). Russian group Vimetco and affiliated company Conef held over 87% of Alro’s shares before this transaction. Vimetco will control 54.19% of the company after the sale.

“Alro believes that the transaction made by its shareholders will bring medium and long-term benefits to both the company and its investors by significantly improving the liquidity and visibility of the company on the capital market,” reads a note to investors Alro issued on December 19.

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