June 30 (SeeNews) - Romanian plastics manufacturer Romcarbon [BSE:ROCE] said that it will buy 2 million euro ($2.1 million) worth of shares of majority state-owned hydro power producer Hidroelectrica [BSE:H2O].
The company will subscribe to Hidroelectrica's shares during the power producer's initial public offering (IPO), through brokerage firm SSIF Swiss Capital, Romcarbon said in a report filed with the Bucharest Stock Exchange on Thursday.
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The Hidroelectrica IPO is taking place until July 4, after having been approved by the Romanian financial authority on June 23. Following the closing of the IPO, Romcarbon will report to the how many shares it has acquired.
Romcarbon has 70 years of experience in the processing of polyethylene, polypropylene, PVC and polystyrene. It is one of the largest employers in the county of Buzau, employing 734 at end-2022, according to data from the finance ministry's website. The company has branch offices in Bucharest, Iasi and Stefanesti.
The IPO comprises up to 78,007,110 existing ordinary shares with a par value of 10 lei each representing a stake of 17.34% owned by minority shareholder investment fund Fondul Proprietatea's [BSE:FP].
Romcarbon's shares traded 0.98% higher at 0.4110 lei ($0.08/ 0.08 euro) by 1346 CET on Friday, data from the Bucharest bourse showed.
($=0.919881 euro)