Electronics and electrical home appliances importer and retailer Romanel has launched a public purchase offering worth 95.5 billion ROL (2.6 million euros) for stock in Metropolitan Leasing, the owner of the highest amount of commercial space in Bucharest.
In recent years Romanel has bought several stakes in Metropolitan Leasing and currently controls 37.2% in the company, making it its largest shareholder. Romanel owns 17.5% in Metropolitan Leasing stock in its own name, while the company's CEO and majority shareholder holds almost 20%.
As part of the offering, which targets 62.7% of stock in Metropolitan Leasing, Romanel is bidding 4,500 ROL for every share it does not own. Against the offering price, the value of Metropolitan Leasing comes to 4.1 million euros.
Beside electronics and electrical home appliances importing, distribution and retail activities, Romanel is also active in the field of timber production. Romanel representatives could not be contacted for comment on the company's intended takeover of Metropolitan Leasing.
Romanel last year lost exclusive import rights for LG electronic products and electrical home appliances after the South Korean group opened an office in Bucharest. Romanel had held the exclusive import rights for LG products since 1996.
The company has a five-store network in Bucharest and sells the products it imports through a network of over 100 dealers, which run about 300 stores.
Metropolitan Leasing was privatised in 1997. At that time the company was called Fraga, but later changed its name. The state sold shares in the company through a tender which were acquired by several investors, both natural and legal persons. The company has not had a majority shareholder yet, though its shareholder structure has become more concentrated over recent years. In the late 1990s, Excelent sweets producer entered the company's shareholder structure through several acquisitions on the RASDAQ and at one time owned more than 30% Metropolitan Leasing.
The sweets producer subsequently sold its participation, with part of the stake being bought by the main shareholder in Romanel.
According to the latest available financial data, Romanel International Group created turnover of 30 million euros in 2003 from deals with electronic products and timber and achieved net profits of 2.1 million euros. At the time, the company had net debts of 34.5 million euros and over 700 employees.
Metropolitan Leasing reported turnover of 0.6 million euros in 2003 and net profits of 20,000 euros.
vlad.nicolaescu@zf.ro
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