Alum wants share capital increase by 96m euros

In this respect the company will issue 56.6m new shares, which will be offered for subscription to shareholders at the par value of RON 5.95, so a company release. If all the shares issued are subscribed, the share capital of Alum will reach RON 376m. Today company’s capital is RON 38.8m. Shareholders registered on April 26 will be able to exercise the preference right for 90 days, starting May 1, 2006. Upon expiry of the term, the BoD will summarize subscription results and set the value by which share capital increased. During the meeting of April 6, shareholders will be informed about finalization of the compulsory public takeover offering of Alum, made by Alro. Alro took over the majority share stake of almost 68% in Alum for about 7m euros, in September 2005, on Rasdaq. The Seller was Piochet Consultants. Alro offered the price of RON 5.6/share. Further on, Alro initiated a public takeover offering for the rest of shares in order to delist Alum from Rasdaq. Alro’s plan mentions merger and operating integration into Alum. Alum Tulcea is one of the major raw material suppliers to Alro Slatina. During the first nine months of 2005, Alum posted 57m euros turnover and 21.4m euros losses.

Until 2010, Alro Slatina, the largest primary aluminum producer in Central and Eastern Europe, wants to increase production capacities up to 420,000t/year. In this respect the company will make investments of about 420m euros, plus investments of 168m euros for modernizing and conforming to environmental standards the current production capacities of companies within the group. In 2005, Alro registered an increase of 11% in the production of cast aluminum and aluminum alloys, up to 243,600t. Last year the company focused on production of added value goods, which represent almost 90% in Alro’s total deliveries. In 2006 Alro wants production increase up to 260,000t. In 2005, deliveries of Alum Tulcea grew to 530,000t. Until 2010, alumina production might reach 1m tones/year.

Alro’s majority shareholder is the American trade house Marco Industries. Alro’s shares are listed on the 1^st tier on BSE.