Several SIF Transilvania shareholders, holding 8.09% of the company’s share capital, are requesting the convening of a General Meeting of Shareholders (AGA) to discuss the management of Mihai Fercala, which is considered flawed and allegedly generated losses of approximately EUR 50 million in recent years.
The shareholders want a revision of the current business model to increase efficiency and align the company with existing European best practices in corporate governance, according to a statement from the respective shareholders.
The shareholders requesting the AGA include Certinvest funds, the “Pensia mea” private pension fund, the Broadhurst Investments investment fund, and a series of individual shareholders, including Constantin Fratila and Radu Toia, a former director within the market regulator who recently secured a seat on the Board of Directors of the Bucharest Stock Exchange market operator.
The statement notes that “almost none of the renovated hotels are currently profitable, and the prospects for recovering investments within a reasonable timeframe, under the same type of outdated management, are nil.”
The proposal is for a new management team to develop the company’s development strategy based on a “private equity” approach, primarily focused on the company’s majority holdings in tourism, real estate development, and non-banking financial institutions.
Source: Profit
Frequently Asked Questions
Why are SIF Transilvania shareholders requesting a leadership change?
Shareholders holding 8.09% of the capital cite flawed management and losses of approximately EUR 50 million as reasons for seeking a change in leadership.
Which major investors are involved in this request?
The group includes Certinvest funds, the “Pensia mea” pension fund, Broadhurst Investments, and individual investors like Constantin Fratila and Radu Toia.
What is the proposed new strategy for SIF Transilvania?
The shareholders propose a “private equity” approach focusing on tourism, real estate, and non-banking financial institutions to improve profitability.