The market value of vacuum cleaner manufacturer ElectroargeşCurtea de Argeş (ELGS) has fallen three-fold on the Stock Exchangesince the end of October last year, when businessman Cătălin Chelubecame a shareholder.
At the end of October 2010, two companies controlled by CătălinChelu, Portavon and Materra Com, both registered in Galaţi, boughtstakes amounting to 29.6% and 5.8% respectively in Electroargeş,with around 13 million lei, which valued the company at around 37million lei (8.8 million euros).
Shortly after the transactions, ELGS shares were transferredfrom the RASDAQ to the second tier of the Bucharest Stock Exchange(BSE), and fell significantly after trading was resumed.
The decline of Electroargeş stock deepened in March, after thebusinessman decided not to distribute dividends, although thecompany's management had already published the notice to attend theGM on the stock exchange, which provided for the distribution of agross dividend of 0.1191 lei/share. The notice was modified andElectroargeş shares plummeted on the Stock Exchange, losing 30% oftheir value in a few days' time.
Last week, Chelu asked the Electroargeş management to convene aGM to discuss increasing the share capital by around 5.7 millionlei, through a cash contribution. After the notice to attend waspublished on the Stock Exchange, shares lost a further 25% of theirvalue.
So, at the price of 0.459 lei/share at the end of last week, thevacuum cleaner manufacturer is now worth just 13.1 million lei (3.2million euros) on the Stock Exchange. Last year it reported a 7.6million-lei (1.8 million-euro) net profit, and a 104.6 million-lei(24.5 million-euro) turnover.
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