The Orthodox Archbishopric of Alba Iulia sold over 2.6% in VES Sighisoara on the RASDAQ market in order to get money to pay off debts to the state and various suppliers. The Archbishopric has been a capital market investor for quite some time, starting to invest in 2002, when it bought shares in the SIFs and BRD.
The Archbishopric currently owns stock in VES Sighisoara and Banca Transilvania, with its portfolio worth some 80,000 euros. It finances its investments on the capital market mainly using revenue derived from selling candles and prints.
The Archbishopric representatives told ZIARUL FINANCIAR that they had to sell the VES stake due to the need for cash.
"Unfortunately, we were unable to keep the shares any longer because we needed the money. We have debts to the state budget and we have to pay suppliers," specified Horia Georgescu, the Archbishopric''s financial manager.
He added that as far as the obligations to suppliers go, the Archbishopric owes 900 million-1 billion ROL for prints and some 150 million for religious items to the Patriarchate Administration. The debts to the state budget are taxes and contributions for the wages for May, worth some 450 million ROL. These obligations have to be settled by June 25.
The Archbishopric had bought VES shares in the first half of last year, and had come to own 5.76% in the company by early June.
"We sold some of the shares for 1,100 ROL. We bought at an average of 2,000 ROL/share, but the company conducted a series of capital increases last year, so that if we take these into account the average price was 1,000 ROL/share. We would have liked to get more, but we still managed to achieve a yield above the banking interest," Georgescu says.
He added the investment in VES was not speculative, as the Archbishopric initially intended to attain 30% in the company, but the lack of cash prevented it from doing so.
"As the company is in Sighisoara, we thought it was a good idea to invest in the area, particularly because VES makes fireplaces and we expect a boom of this market, due to the present boom in the construction market. We saw VES exporting most of its output, which we found attractive," Horia Georgescu said.
He added the Archbishopric of Alba Iulia also owned shares in Banca Transilvania. "We have 14,000 shares but we want to buy some more," Georgescu specified. Asked by ZIARUL FINANCIAR what the Archbishopric''s investment strategy was going to be, Georgescu added he had sent someone to attend the VES'' General Meeting of Shareholders yesterday. Depending on what is decided during that meeting, a decision will be made.
"Since 2002 when we first entered the capital market, we have been financing 80% of our investments with the money derived from selling candles and prints. As for candles, we are strictly tied to our parish, because we may not sell anywhere else but in the two counties in this parish, Alba and Mures. We do not have this problem selling books, though, as we may sell books anywhere in the country," the Archbishopric''s financial manager explained.
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