Drugmaker Antibiotice Iasi will raise its share capital by 26.5 billion ROL, a sum accounting for dividends it was supposed to pay to its shareholders last year from the profit earned in 2002.
The capital increase will be achieved through a free share issue, which will see shareholders receiving one free share for each 13 owned shares.
The distribution of free shares will be tackled by the company's stockholders at the end of this month. Only shareholders registered by May 11th will benefit from the company's capital raise.
Antibiotice shareholders had decided last year that the dividends endorsed in early 2003 should be cancelled because of the company's shortage of cash, a situation experienced by most drugmakers. Antibiotice's receivables exceed 800 billion ROL (24 million dollars).
During the same General Meeting of shareholders, scheduled for the end of the month, the stockholders are expected to okay the sale of the stake controlled in Pharma, a drug distribution company.
Ionel Blanculescu, head of the National Control Authority, had advised the Health Ministry, the main shareholder in Antibiotice, in February, to pull the drugmaker from the shareholding structure of "parasite" company Pharma. The Health Ministry owns 53% in Antibiotice, while the company's main minority shareholder is Broadhurst investment fund, with a 7.7% participation.
Antibiotice stock, which trades on the first tier of the Bucharest Stock Exchange, has climbed more than 35% since the beginning of the year, in line with the average increases logged by the other stocks on the market. The company's stock price at the close of Thursday's session reached 3,050 ROL/share, the same as in the previous day. At this price, the company's market value stands at 32 million dollars.
In 2003, the company met the targets it had set at the beginning of the year: a slight increase in turnover and profit, favouring financial stability.
Antibiotice Iasi reported sales worth 36 million dollars (1,215 billion ROL) in 2003, up 5% from 2002. In real terms, sales actually posted a slight drop, considering last year's 14% inflation rate. Net preliminary profit came to $4 million (136 billion ROL), up from the $3.6 million logged in the previous year.
vlad.nicolaescu@zf.ro
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