Court annuls 34-fold capital increase at Bucharest Airports

Responding to the objection expressed by the minority shareholder Fondul Proprietatea (FP), the Bucharest Court of Appeal on March 7, 2024, annulled the capital increase at Bucharest Airports Company (CNAB), operated in October 2021 by Romania's Ministry of Transport as the majority shareholder, Bursa.ro reported.

FP objected that the value of the land, which was the in-kind contribution of the Ministry of Transport, was severely overstated at RON 3.8 billion or EUR 760 million, 11 times more compared to a prior evaluation (RON 336 million).

In October 2021, the Ministry of Transport, as the majority shareholder of Bucharest Airports, decided to increase the company's share capital from RON 143 million to RON 4.91 billion through a contribution in kind, namely the land of Bucharest's secondary airport, Baneasa.

Under the decision, endorsed by the extraordinary general shareholder meeting (EGSM), Fondul Proprietatea was forced to subscribe 95,370,229 shares, worth RON 953.7 million (nearly EUR 200 million), to prevent the dilution of its 20% stake to 0.7%.

This is the third time the process of increasing the share capital has been initiated since 2001, when Baneasa Airport received the land ownership certificates.

Bucharest Airports, 80% controlled by the state and having Fondul Proprietatea as a minority shareholder (20%), is the operator of the two airports in Romania's capital city.

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