Surprise, Surprise: SIF Transilvania Could List Their Biggest Tourism Company On SIBEX

Izabela Sîrbu

Financial investment firm SIF Transilvania (SIF3) could list their hotel company Aro Palace on the Sibiu Stock Exchange (SIBEX) by the end of the year. Aro Palace has an accounting value of over 100 million RON, as reflected in SIF Transilvania"s books. "We will list Aro Palace either on the Sibiu Stock Exchange or the Bucharest Stock Exchange by the end of this year. We have had talks with the management of both Exchanges and we will make a decision in the near future," SIF Transilvania CEO Mihai Fercala told BURSA. Judging by the accounting value stated in SIF Transilvania"s records, Aro Palace would become one of the top 20 companies listed on the Bucharest Stock Exchange (BSE).

SIF Transilvania"s plan is to first list Aro Palace on either of the two Exchanges by the end of this year and then possibly merge Aro Palace with the other two tourism companies in SIF Transilvania"s portfolio, respectively Orizont Turism Predeal and THR Prahova Ploiesti, which are currently listed on RASDAQ. SIF Transilvania"s portfolio of tourism companies includes Aro Palace (86%), THR Marea Neagra (EFO, 78%), Turism Felix (TUFE, 63%) and Continental Hotels (9%).

Aro Palace is a hotel company controlling the Aro Palace Hotel (five-star, 200 rooms), the Capitol Hotel (three-star, 183 rooms), the Coroana Hotel (two-star, 100 rooms), the Postavaru Hotel (one-star, 60 rooms) and the Aro Sport Hotel (one-star, 32 rooms). All the hotels are located in Brasov. The company also controls four restaurants in the same area.

The tourism-related companies account for over 30% of SIF Transilvania"s portfolio, the company being the leading Romanian-based investor in the tourism industry. SIF Transilvania recently re-opened two four-star hotels at the seaside, namely the Brad-Brad-Bega in Eforie Nord and the Cleopatra in Saturn. The total investment amounted to 12 million EUR.

"We are planning to invest another 6 million EUR in the renovation of the Narcis Hotel in Saturn and start the design of the most beautiful hotel at the seaside, which will be built on the location of the Vraja Marii Hotel in Eforie Nord," Fercala added. The tourism industry remains an investment priority of SIF Transilvania, followed by the car-making industry and the financial industry. "We are very cautious about investments this year, as there is great distrust in the recovery of the market and the end of the recession," Fercala added.

The management of SIF Transilvania on Tuesday announced intent to disburse the dividends due for 2008 in the period between 17 August and 23 October 2009. The gross dividend is 0.03 RON/share.