The Authority for Privatisation and State Ownership (APAPS) has sold on RADAQ market a 1.7% stake in the Intercontinental Hotel Company (CHI) at a price that was seven times lower than initially announced, down 40% from the price the shares were traded the previous day.
The Privatisation Authority cashed 3.8 billion ROL ($110,000) for 1.7% in CHI, which was the last stake controlled by APAPS in the company. Intercontinental shares had been traded at 470 ROL during the previous day, whereas APAPS sold most of its shares for merely 250 ROL. The Romanian institution had initially said the sale offer would be made for 1,709 ROL per share.
RHIC Holding is a company registered in Luxembourg, which became the major shareholder in Intercontinental in July this year. RHIC Holding took over the stake held by General Consulting and Procurement (GCP). George Constantin Paunescu owns the GCP company, which transferred its Intercontinental stake to AVAB (Banking Assets Resolution Authority), in the account of a debt to the state institution.
The transfer had been closed ever since 2000. RHIC Holding controls 49.1% in Intercontinental, which stake had been valued at $12.5 million at that time. The market value of the entire company, which was calculated in accordance with the price cashed by the Authority for Privatisation and State Ownership, accounts for only $6.7 million.
CHI holds Intercontinental and Lido hotels, based in Bucharest, and posted losses worth 153.3 billion ROL ($4.6 million) last year, whereas turnover amounted to 279 billion ROL (some $8.5 million).
vlad.nicolaescu@zf.ro
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