Transgaz Shareholders to Receive 15 Free Shares for Each Share Held

Transgaz (TGN) shareholders will receive 15 shares for each share held, according to a report sent to the Bucharest Stock Exchange, following the increase in share capital by incorporating reserves from the net profit of the previous financial years.

The Extraordinary General Meeting of Shareholders of SNTGN Transgaz SA approved by Resolution no. 11 of 07.12.2022 the increase in the share capital by incorporating the reserves constituted from the net profit of the previous financial years in the amount of RON 1,766,076,600, from the amount of RON 117,738,440 to the amount of RON 1,883,815,040, by issuing 176,607,660 new shares with a nominal value of RON 10/share.

According to the TGN report, the newly issued shares do not change the shareholders’ ownership shares and will be distributed free of charge to all shareholders registered in Transgaz’s shareholder register, maintained by the Central Depository, on the record date.

Each shareholder registered in Transgaz’s shareholder register on the record date will be allocated 15 shares free of charge for each share held, according to the calculation algorithm applying the formula RON 1,766,076,600/RON 117,738,440. The record date approved by the Extraordinary General Meeting of Shareholders for the identification of shareholders is May 3, 2023.

The share capital will be increased to support the company’s ongoing activities. At the same time, this operation will bring the company back to the attention of the public and investors due to the large number of shares available for trading, which will increase the liquidity of SNTGN Transgaz SA shares on the stock exchange.

The securities offered are dematerialized registered shares, traded in the Premium category on the Bucharest Stock Exchange.

The National Gas Transmission Company Transgaz SA is the second largest majority state owned company in the utilities sector which, in order to materialize the strategic objectives included in the Government Program ‘A Strong Market – Capital Market Development’ promoted an initial public offering for the sale of shares, namely 10% of the increased share capital, as established by GD no. 1329/2004 regarding the mandate of the public institution involved and the approval of the privatization strategy by public offer of some companies from the portfolio of the Ministry of Economy and Trade, amended by GD no.708/2005. In the context of the development of the capital market, the listing on the Bucharest Stock Exchange of the only licensed gas transmission system operator in Romania was a strategic and important decision both for the future of the company and for the increase in the stock market capitalization.

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