Jafco Holding wants the entire capital of Victoria Bucuresti

The main shareholder of chemical products manufacturer Victoria from Bucharest on Wednesday launched a bid for all the shares of the company, traded at present on Rasdaq market.

The bid for the entire stake of 43.30 percent in Victoria Bucuresti is worth 300 lei/share, slightly higher than the last average trading price, of 230 lei/share, but much lower than the nominal value of one share, which is 1,000 lei.

"It is unlikely for small investors, who usually find it difficult to answer such bids, to be enthusiastic over the price offered by the main shareholder. If, on the other hand, one has in view the fact that for more than half a year the average price has been almost free falling, one could count on a positive effect of this move," said a dealer on the secondary capital market.

Moreover, the bid draft mentions that the bidder reserves the right to increase the price during the bidding, if it is approved by the National Securities Commission and if shareholders are informed.

Victoria Bucuresti shareholders who have submitted their shares before the modification of the price are to receive the increased price.

Victoria Bucuresti has a share capital of 8.38 billion lei, divided into shares with a nominal value of 1,000 lei. The most important shareholder of the company is Jafco Holding Romania, which holds the main stake of the company of 56.691 percent of the capita,l the rest of the shares belonging to small investors (holding 43.309 percent of the shares).

The company operates in the chemical industry and is specialised in producing specific chemical products. According to the bid draft, the company does not have any other branches or subsidiaries.

Victoria shares are traded on Rasdaq market, the average price registered during Wednesday's trading session being 270 lei/share.

Jafco Holding Romania is a joint venture, entirely privately owned and is specialised in wholesale and retail trading services.

The company has a share capital of 29.18 billion lei, divided into shares with a nominal value of 100,000 lei. Significant shareholders include Imad M. Jaffal, a natural person holding 97.41 percent of the capital, Nasser Eddine Talal Ali (1.369 percent) and Issam El-Baba with 1.216 percent.

Jafco Holding does not plan to change the company's object of activity or to liquidate the company but they plan to cooperate with the company's managers in an investment plan for the next two years. The development strategy of the business plan suggested by Jafco mentions the implementation of Western know-how and the company's modernisation.