Dusu, Celco owner: I turned down a 70m-euro offer

Nicolae Dusu, chairman of Celco Constanta, the second biggest player on the ACC (autoclaved cellular concrete) market, states he has recently received a takeover bid of around 70m euros from an investment fund, but he rejected it as he considered it too low.

"Compared with previous years, when I turned down any offer, this year I understood in capitalism everything is for sale. I received a 70m-euro takeover bid, but I rejected it as it was too low," Nicolae Dusu, who last year declined another 150m-euro takeover bid, told ZF.

Celco chairman states that, on the contrary, he is interested in acquisitions or mergers on the market and that he is working with KBC Securities brokerage to study the market. "We're open to several acquisition or merger options, because this is a good moment, but prices are not the best for the time being. I believe we'll see prices go down in the following period," he states.

Dusu is one of the most powerful businesspeople of Constanta, and Celco is a 31.2m-euro business, with a 34% net profit margin.

The construction materials producer is in talks with several market players for some acquisitions or mergers, but talks will most likely be finalised in early 2010, when companies' values slide further.

"We're ready for possible acquisitions or mergers and we're waiting for better prices. A concentration on the ACC market is welcome because we'll become stronger," states Nicolae Dusu.

"Celco has no financial problems and we have cash for acquisitions, but we're waiting for the right time. Instead, we've had problems on the market because of the plummeting demand for construction materials," Dusu maintains. He had previously said ACC demand this year dropped by 30% in terms of volume, while prices slid by 17%.

Celco turnover will shrink by around 30% this year, in line with the market pace, to 22m euros, as major real estate projects have been frozen or delayed and around 80% of demand came from people who built houses individually.