Five members of the BCR Supervisory Board will resign

17. Juli 2006, 00:00

Since the BCR privatisation nears completion, four of the members of BCRs Supervisory Board will resign early...

Since the BCR privatisation nears completion, four of the members of BCRs Supervisory Board will resign early next month, Ziarul FInanciar reportd. The chairman of the board, Daniel Daianu, will give up his position but remain a member. This is one of the steps required for the final takeover of BCR by Austrian Erste Bank, an operation scheduled for completion in September. By September, Erste has to transfer the money for the 61.88 per cent stake it will get from the Romanian state, EBRD and IFC.

BCR will also modify its charter, as agreed upon by the Romanian state, Erste and the SIFs, the main minority shareholders of the bank. It will allow Erste to get full control over the bank, while SIFs interests as minority shareholders will not be affected.

"This is a blank resignation we are handing in as stipulated in an agreement whereby we decided that, when we get closer to the completion of the process, we shall step down. The resignations will take effect at the moment Erste pays up and the ownership transfer is completed. At that time, they will appoint an Austrian as chairman of the Board," Daniel Daianu told the newspaper.

Other members of the board, Gheorghe Ionescu and Joszef Birtalan, representatives of the Romanian state, Oliver Green, EBRD representative and Thomas Krayenbuehl, IFC representative, also have to submit letters of resignation.

The other two members of the Supervisory Board will  keep their position because they are SIF representatives: Teodor Mihailescu (SIF Muntenia) and Mihai Fercala (SIF Transilvania).

BCR called a General Meeting of Shareholders for August 4, when the new members of the Supervisory Board are to be elected, and modifications of the charter to be voted by shareholders.

A clause initially introduced in the banks charter to protect EBRD and IFC as minority shareholders would now prevent the Austrians at Erste from acquiring full control over the bank. This clause says that no significant decisions can be made unless by a majority of 75 per cent of the votes and that it cannot be removed from the charter without the SIFs agreeing to this. The SIFs own 30 per cent in the bank together; the banks employees hold another 8 per cent while, Erste is to get a 62 per cent stake.
Eastbusiness.org
In cooperation with and under the responsibility of Eastbusiness, the business information service for Central and Eastern Europe

You can subscribe to the following newsletters
Eastexpress
CEE-Country
Share if you care.