The Privatisation Authority (APAPS) has requested aluminium maker Alro Slatina, one of the best state-owned companies, to increase its share capital.
The reasons behind this request remain a mystery. If the capital increase were performed, APAPS would willingly give up control over the company, leading to an indirect privatisation.
The winners would be the current private shareholders - Conef, the four Russian investment funds holding together a 15% stake in Alro, or the Romanian Investment Company fund.
The company who stands to lose the most is the leading European aluminium producer - French Group Pechiney, deemed as a favourite in the race for taking over the main stake, which had made a strong lobby at a political level so that Alro and Alprom should be put up for sale.
Market sources say that Conef, a trade company, would be the main winner if the share capital increases.
Conef is held by Marco International, a finance and commerce company owned by a number of US families living in New York. The president of Marco International is Alan Kestenbaum, who is also one of the main shareholders.
Premier Adrian Nastase on May 15 stated he had no details on the possibility that Alro Slatina should benefit from a double share capital increase, but added that he was planning to run a thorough analysis on this situation over the next period.
As for the privatisation process, he pointed that, basically speaking, the Romanian authorities should focus on both the price and the investments pledged by the buyer, as they are needed to make some structures more efficient.
The most vehement critics against the share capital increase were the representatives of the consortium that supplied Alro privatisation with counselling services.
"It would be stupid for the state to increase the share capital by 60 million dollars in cash," a source within the consortium was quoted as saying by Mediafax.
Alro trade union also announced that it disagreed with the share capital increase and that it would organise a protest march.
An APAPS order signed by Privatisation minister Ovidiu Musetescu unexpectedly requested the chairman of Alro Slatina Management Board, Gheorghe Dobra, to summon an Extraordinary General Assembly of Shareholders (AGA) in order to discuss the share capital increase by selling shares worth 60 million dollars and incorporating the surplus derived from the company's asset reassessment.
While the second method to increase the share capital can be deemed as normal, since the company's assets are underestimated, it is a mystery why Alro suddenly needs 60 million dollars.
APAPS, holding a 54.7% stake in Alro, is not allowed to subscribe to the share capital increase and risks to narrow its stake below 50%.
The state consequently would lose control on Alro, which is an implicit privatisation, by increasing the stakes of the other private shareholders.
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