Drugmaker Antibiotice To Borrow EUR6.5M From RBS Bank

04.28.2011 By Andrei Circhelan

Shareholders of Romanian medicine maker Antibiotice (ATB.RO) on Thursday approved the contracting of a EUR6.5 million loan from RBS Bank and the capitalization of 9 million lei (EUR2.21 million) from last year’s profit, to finance investment.

Shareholders of Romanian medicine maker Antibiotice (ATB.RO) on Thursday approved the contracting of a EUR6.5 million loan from RBS Bank and the capitalization of 9 million lei (EUR2.21 million) from last year's profit, to finance investment.

The company will guarantee the RBS Bank loan with equipment, plots and buildings, according to a decision of the company's shareholders.

Antibiotice will include in the capital RON9 million, representing dividend for 2010. The company will issue free stock for shareholders and boost the share capital to RON56.8 million, from the current RON47.7 million.

The funds capitalized represent about 70% of the RON12.5 million net result achieved in 2010.

The company's budget, approved Thursday, sees a 20% rise in sales this year, to RON294 million, while pretax profit should rise 21% on the year, to RON22.4 million.

The investment budget reaches RON31.6 million, targeting the construction of new production sites and an applied research center for new medicine.

The Romanian Health Ministry holds 53.02% in the company, while regional investment fund SIF Oltenia (SIF5.RO) holds 10.09%.

Antibiotice stock closed up 0.43% Wednesday, at RON0.58. (EUR1=RON4.076)