Paint producer Policolor Bucharest is to sell around 15 hectares of land including a number of buildings in south-eastern Bucharest in deal worth 7-8 million euros.
However, the company may not receive the full amount because the cost of pulling down the buildings could be high for any potential buyer.
Shares in Policolor, which is listed on the Bucharest Stock Exchange, have risen by more than 50% since the beginning of the month, with investors expecting the company to post substantial profits from the sale of the land. The revenues from the sale could be used either for investment or paid out to shareholders.
The company owns nearly 29 hectares of land, and the 15 hectares now up for sale are not used in manufacturing.
Policolor is controlled by two investment funds that have been restructuring the company over the last few years in order to prepare for their exit by sale to a strategic investor. The sale of property not used by the company is one such step towards selling the company. The latest information on the market shows that Romanian Investment Fund owns 39.4% in Policolor, while Romanian American Enterprise Fund controls a further 33.2%. Citibank Romania was also reported as a shareholder at the end of last year, though it is most likely acting as custodian for another foreign investment fund.
Many Romanian companies have sold off properties over recent years in order to finance investment in their core businesses.
The land Policolor has put up for sale represents just over 147,000 square metres, of which around 39,000 square metres are covered by buildings. The land is close to the Bucharest-Constanta highway.
vlad.nicolaescu@zf.ro ; ionut.bonoiu@zf.ro
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