The advice of the consultant from Big Four brought Dragoş Bîlteanu a fine

The big consultant from Big Four who advised SIF1 Banat Crişana to create in Cyprus its holding for the stakes in the real estate sector apparently neglected to tell their client that being a listed company, it is required to report almost everything to the Bucharest Stock Exchange.

As a result, some of the investors were rather displeased with the "relocation" to Cyprus of some stakes in 18 companies, worth 100.4 million lei (22.5 million Euros).

Even more, the story has also upset the Financial Supervision Authority (ASF) which, after asking SIF1 to publicize a report on the operations in Cyprus, has also fined Dragoş Bîlteanu, the president of SIF1, 10,000 lei, for not appropriately reporting the move.

The wording used by the representatives of the SIF in the report sent in yesterday to the Bucharest Stock Exchange shows that it doesn't quite agree with the ASF.

"The Financial Oversight Authority - the Sector of the Financial Instruments and Investments is fining Mr. Dragoş-George Bîlteanu 10,000 lei, as Chairman of the Board of Directors, allegedly because SIF Banat-Crişana did not inform the public in time, through a current report, about the characteristics of SIF Imobiliare Ltd", the report in question states.

SIF Banat-Crişana has announced that it wants to list the new company - SIF Imobiliare - on the alternative trading system of the Bucharest Stock Exchange.

• The story of SIF Imobiliare, from LTD to PLC

SIF Imobiliare was created in July, in Nicosia, under the name of SIF Imobiliare Limited, and in September it was turned into a "Public Limited Company" (PLC), according to SIF1.

The initial share capital of the company was 1,000,000 Euros (subscribed and paid-in share capital), divided into 1,000,000 ordinary shares. On August 28th, 2013, the shareholders have decided to increase the share capital by issuing 500,000 ordinary shares with a face value of 1 Euro/share (additional authorized capital).

Thus, according to the report dated September 10th, the value of the authorized and subscribed share capital is 1,500,000 Euros, of which 1,000,000 Euros share capital and 500,000 Euros not paid-in share capital.

When SIF Imobiliare was created, SIF Banat Crişana was a sole shareholder. The value of the shares brought by SIF Banat-Crişana as contribution in kind was 100,476,336 lei (specifically 22,537,928 Euros), representing the value of these shares on May 31st, 2013, calculated according to the regulations of the ASF concerning the calculation of the net assets.

According to SIF1, the balance between the contribution in kind and the share capital (22,537,928 Euros - 1,000,000 Euros) represents the share premiums. Later, the authorized share capital was increased by 500,000 Euros and the company was changed to a public limited company, to allow it to be traded.

Thus, six of the companies in the portfolio of SIF Imobiliare became shareholders: "Administrare Imobiliare", "Comalim", "Arta Culinară", "Complex Laboratoare", "Agrorent", "Bistriţa", each with one share, next to SIF Banat Crişana, with 1,499,994 shares of SIF Imobiliare PLC.