How much could Szarvadi pay to get Domo back?

Autor: Alexandru Anghel 27.06.2010

Lorand Szarvadi, CEO and founder of Domo has recently decided to attempt to buy the company back from investment fund Trans Balkan Investment (formerly Equest Investment Balkans), which acquired the company in 2007, at the same time as Bulgarian retailer Technomarket. Together with Technomarket's founder, Szarvadi has submitted an unsolicited offer to Trans Balkan Investment (TBI).

How much will Szarvadi pay to buy Domo back in the context where three years ago the entrepreneur collected around 25 million euros together with the Hegedus family from Equest, according to estimates made by ZF at the time of the transaction? Analysts expect the value of the transaction to be much lower than the 75 million euros paid by Trans Balkan Invest (TBI) three years ago for 75% in Domo if the investment fund accepts Szarvadi's offer.

Domo representatives did not wish to comment on the offer, because it is currently being negotiated. In 2009 Domo was the company on the electronics and home appliance retail market that saw the lowest business decline, to 170 million euros, from 207 million euros in 2008. According to company representatives, it posted a 2.5 million-euro operating income, and a 1.2 million-euro net loss.