Alro Slatina, one of Romania's largest and most profitable companies, has been rocked by scandal. Three top representatives of American trade company Marco International (the main shareholder in Alro Slatina) have stepped down from the company's Board, sources close to the aluminium producer said.
The three to resign were Alexander Krasner (Alro president), Peter Braun (vice president) and Sam Manaktala (a board member). Their resignations came as a result of financial disagreements with the investor that financed Marco International's takeover of Alro, one of Romania's most controversial privatisations, sources added.
The resignations are expected to reveal the identity of the indirect owner of Alro, with sources saying it could be Russian businessman Vitali Mischitsky. His name could officially emerge on November 18, the scheduled date of Alro's General Meeting of Shareholders. Vitali Mischitsky is well known in Russia, where he controls the Rinko oil group.
The resignations are also expected to be announced officially on November 18, and "personal problems" are to be cited for each of the former coordinators of Alro's operations.
"I have resigned, but am not at liberty to comment other than make the official announcement," Peter Braun told Ziarul Financiar. According to sources close to Alro, Marian Nastase, the company's financial director, will also leave together with the three.
It seems the main source of the dispute lies in London, where the financial vehicle is registered, through which the Russian investor and Alexander Krasner (a businessman dealing in metals) control Alro, sources speculated. The same sources also said that Krasner had filed a lawsuit against his partner in London over financial disagreements. Alexander Krasner was not available for comment.
Following the resignations, Alro could enter a new and confusing period. This is very bad timing, as the company is currently performing very well thanks to the upward trend of the international aluminium market. Aided by the surging aluminium prices, the company recorded a nine-month net income of some 30 million euros, up 25% on the same period last year.
Moreover, the Alro-Marco International consortium was about to contract a 105 million-euro syndicated loan. According to market rumours, part of the credit (65 million euros) was to be used by Marco to refinance some of the debts created in the acquisition of Alro. In other words, Marco International was to make repayments to its financer.
Alro's takeover cost Marco International about 160 million dollars. The aluminium plant now has a market capitalisation of approximately 500 million dollars on the Bucharest Stock Exchange.
After the resignations, the only top manager left at the company is general manager Gheorghe Dobra. "I did hear about the resignations, but these are issues to be dealt with by the shareholders and I cannot comment. Alro will probably go through another transition period," said Dobra.
laurentiu.ispir@zf.ro
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