DESPITE THE FACT THAT THE SHAREHOLDERS DON'T APPROVE The convening of the General Shareholder Meeting, revoked by the management of SIF Transilvania

The Directorate and the Supervisory Board of SIF3 Transilvania have decided to revoke the convening of the General Ordinary Shareholder Meeting of February 15th/16th, 2016, after the court suspended the request of a group of shareholders to have the current management replaced, according to a report sent to the Bucharest Stock Exchange (BSE).

The group of shareholders which have a combined stake of more than 8%, who are disputing the management of SIF3, includes Corin Ioan Trandafir, Ilie Stoichescu, Radu Toia, Constantin Frăţilă, Maria-Alexandra Frăţilă, Radu Ciuceanu, Gabriela Alexa, Broadhurst Investments Limited, FDI Certinvest Dinamic, managed by SAI Certinvest SA, FDI Certinvest Prudent, represented by SAI Certinvest SA, FDI Certinvest XT Index, managed by SAI Certinvest SA, FDI Certinvest BET FI Index, managed by SAI Certinvest SA and the Optional Pension Fund My Pension (Fondul de Pensii Facultative Pensia Mea), managed by Certinvest Pensii Sociale de Administrare a Fondurilor de Pensii Facultative.

The agenda of the Shareholder Meeting of February 15th/16th, 2016 comprised the approval of the filing of a liability lawsuit for inadequate management against the members of the directorate and the election of a new Supervisory Board.

SIF Transilvania has sued the "rebellious" shareholders and has asked the court to find that they are abusing their minority shareholder position in a concerted manner as well as declare the absolute nullity of the request for the convening of the aforementioned General Meeting of the Shareholders of SIF Transilvania.

The shareholders who signed the request to summon the General Shareholder Meeting of SIF Transilvania think that the ruling of the County Court of Braşov to suspend their request, can not produce any effects on the summoning of the General Shareholder Meeting.

"The SIF directorate has fulfilled its obligation to convene the General Shareholder Meeting, which will be held under the announced conditions", these shareholders told us on Thursday, and they further said: "Any other interpretation could represent a limitation of the minority shareholders' rights and would lead to the creation of a dangerous precedent for the stock market overall. We are convinced that the situation will be watched closely by the institutions of the market and that they will act in a manner that is adequate for protecting the interests of the shareholders of the SIF".

Given these factors, this conflict too will most likely be settled through the courts, which means it will be a lengthy one.