Romania: Banca Transilvania to pay bonus shares and to launch a new buy-back program

Banca Transilvania (TLV) has called its annual GSM for April 29, 2013 when the shareholders will be asked to approve the payment of bonus shares. Thus, the bank intends to issue 300.39 mn new shares through the capitalization of 2012 net profit.Every shareholder registered on May 20 will receive 15.94 new shares for every existing 100 shares. Moreover, TLV plans to start a new buy-back program for 17.25 mn shares (or 0.9% of the current outstanding number of shares) which will be used to reward some of its employees. We rate this piece of news as neutral for TLV shares.

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