Transilvania Investments requests that THR-Marea Neagră capitalize on a series of assets

Transilvania Investments Alliance (TRANSI) requested the addition of an item on the sale of some hotels, restaurants and land to the agenda of the Black Sea Tourism, Hotels, Restaurants shareholder meeting (EFO) on February 19, as shown in a report of of the company published, yesterday, on the website of the Bucharest Stock Exchange (BVB).

The proposed sale procedure is by public auction with outcry respecting the right of pre-emption provided for in the rental contracts, if applicable, it is mentioned in the document. According to the report, the company wants to sell the Măgura Hotel with its annexes (restaurant, swimming pool and thermal plant), the starting price in the auction being three million euros without VAT; Vraja Mării complex (hotel, restaurant, thermal plant, beach bar) with a starting price of two million euros without VAT; as well as two plots of land located in the Saturn resort, with areas of 21,366 square meters and 76,395 square meters, the starting prices of the auctions being 2.5 million euros and 7.5 million euros without VAT, respectively.

"The procedure for organizing the auction will start within a maximum of five working days from the date of the decision of the general meeting of shareholders", it is mentioned in the request to complete the AGM. "The payment method is - minimum 30% on the date of signing the sales contract and the difference within a maximum of 30 calendar days from the date of signing the sales contract".

From the collected money, the sums owed to the shareholders who submitted a request to withdraw from the company based on the decision from December last year will be paid and/or the financing contracted by the company will be reimbursed. "The destination of the additional amounts obtained as a result of the capitalization of the assets will be established by a decision of the subsequent General Meeting of Shareholders", the document also states.

Also, Transilvania Investments requests the completion of the agenda of the THR-Marea Neagră shareholders' meeting with an item regarding the approval of a short/medium-term loan, in order to cover temporary liquidity needs, in the amount of a maximum of five million euros or the equivalent of this amount in lei. On the agenda of the meeting of shareholders of the tourism company on February 19, there is already the sale of some assets, including those proposed by Transilvania Investments, in some cases at different prices, as well as the contracting of a loan worth four million euros.

THR-Marea Neagră is in a process of partial division through which a part of the company's assets is transferred to a new company that will be closed, named Hoteluri Restaurante Sud. According to the board of THR-Marea Neagră, the operation is necessary due to the fact that, currently, the company carries out two distinct activities:

- the premium related to tourist services provided in three- or four-star hotel and food establishments, which can be grouped into all-inclusive packages;

- the other which consists in the activity of renting and subletting real estate, respectively two-three star units, which is addressed to a low-cost market segment.

According to the division project, the operation is necessary because the two activities have different needs for investment, promotion, etc., the goal being the efficiency of the activities to obtain sustainable economic benefits in the long term.

The division received the vote of the majority of THR-Marea Neagră shareholders, and for those who did not agree with the operation, the company will buy their shares at the price of 0.4414 lei per share, set by the Darian appraiser. The withdrawal price is equivalent to 73% of the book value of the EFO share, which has raised the displeasure of some investors. In the division project, the appraiser applies two methods - the income approach and the market approach. Finally, the valuer only chooses the income approach for which it claims there is better accuracy than the market approach.

According to a report from BVB, investors holding 48.7 million EFO shares have exercised the right of withdrawal, for which THR-Marea Neagră will pay 21.5 million lei.

Transilvania Investments owns 79% of the company with a tourism profile, whose market value is around 230 million lei.