US investment fund buy shoemaker Zorile's stocks

The state's stake in Zorile footwear maker (60.25%) was bought by an American investment fund on Monday. The transaction was performed on the Moldova Stock Exchange at the auction selling public stocks, Info-Prim Neo reports. Those 1,323,500 stocks were sold at the starting price of 65.01 lei per unit. The par value of a stock is 18 lei. The state put up for sale its stakes in 61 companies. In 22 of them, the government holds the control stake, more than 50%. The auction will last till Sept. 26. On the first day, they sold 11 companies with a total value of 180.9 million lei, exceeding with 31.9 million lei (21%) the starting price. Among them there are 5 drug stores, stakes in Zorile, Euro-Alco, Carmez, Orlact and Sudzucker Moldova (the last three are small stakes). Eight stakes were sold at the starting price. A fierce fight was waged for three pharmacies. The ending price of SA Farmacia Centrala from Chisinau was 2.5 times as high as the starting price reaching 161.1 lei per stock. The stakes in the Unic store and SA Floare–Carpet were not claimed on the first auction day. Igor Grigoriev, the manager of the Public Property Agency said he was satisfied with the results of the first day. “Actually we expected better results, but after the situation on the world stock exchanges and the collapse of some big American banks, it probably has had its impact on the Moldovan securities market. Gladdening is the news that SA Zorile's stake was bought by an American investment fund. It means our market inspires trust,” Grigoriev said. Alexandru Krociuk from the brokering firm Proajioc has said it's crucial that all the buyers intend to invest in the newly acquired companies, that is in the development of the Moldovan economy. This is the 5th auction at which the state sells its stakes in companies.