Asset Recovery Agency Retries To Exit Avicola - Iasi

The State Asset Recovery Authority (AVAS) has announced intent to organise an open auction to sell 1,128,055 shares equal to 9.5716 per cent in the share capital of Iasi-based poultry farming company Avicola (listed as AVIM on the RASDAQ platform of the Bucharest Stock Exchange). The shares have a face value of 2.5 RON, equal to the starting price of the auction, which is 2,820,137.50 RON for the entire package.

The auction catalogue can be purchased until 8 December at noon. Formal auction participation documents are expected until 13:00 hrs the same day and will be opened one hour later. The auction will take place on 9 December.

This is the third attempt made by AVAS this year to exit Avicola SA - Iasi, as no one participated in the previous two auctions. Despite the lack of any interest, AVAS has not changed the starting price and it is quite unlikely that prospective buyers will attend the third round, especially considering that that the latest transactions with AVIM shares, dated 24 September, were concluded for 0.57 RON/share.

Avicola SA - Iasi produces chicken meat, eggs and fodder, as well as various chiken meat by-products. The grains for the fodder are procured through a dedicated system. The company is controlled by George Becali with 85.0705 per cent. AVAS holds 9.5716 per cent, whereas financial investment firm SIF Moldova has 3.771 per cent. Various individual and business shareholders have the rest.

The company concluded the first quarter with over 15,426,429 RON in turnover and a profit of 1,450,989 RON. The year-earlier profit was 1,198,817 RON.