French financial group BNP Paribas, one of the most important such groups in Europe, is to buy the Credisson business in a deal of around 40 million euros. The amount could be even higher depending on future performance,
sources close to the deal told Ziarul Financiar.
The French group will buy all the shares in the biggest company specialising in consumer finance on the Romanian market through its Cetelem branch, which is ranked as the leading player on the consumer finance market in the euro zone.
The Credisson business was started around three years ago by Swedish investment fund Oresa Ventures and Dan Andronescu, the founder of the Flanco electronics and home appliances retail chain, by externalising the consumer finance business of Flanco.
Oresa Ventures owns 80% in Credisson with the rest being held by Andronescu.
Oresa Ventures and BNP Paribas'' officials had made no comment on the transaction by the time of going to press.
The Credisson sale is considered one of the Romanian market''s most spectacular transactions for a number of reasons. First, the return on the investment is very high, given that Credisson''s owners invested approximately 3.5 million euros in the company and then sold the business to a strategic investor for over ten times that amount.
Second, Credisson was the first consumer finance company on the Romanian market, and its acquisition has aroused interest from both financial investors like Polish Enterprise Fund and, in particular, strategic investors like OTP (Hungary), General Electric (US), AIG Consumer Finance (US) and Sofinco (part of French financial group Agricole Credit).
At the same time, Societe Generale, the majority shareholder in the second leading bank on the Romanian market, BRD, also placed a bid. On the other hand, BNP Paribas'' entry on the market through the acquisition of Credisson could in fact convince the French group to expands its local operations to include the banking sector.
Celestem has more than 20 million clients and operates in over 20 countries. Its gross profits in 2003 amounted to 427 million euros.
Credisson was the first consumer finance company to be established in Romania and was set up precisely because of the favourable macroeconomic conditions (the stabilisation of the exchange rate for domestic currency and the falling interest rates) and the growth potential of the market. It has gradually become a lender comparable to a medium-sized bank.
Nearly every potential buyer of Credisson has set entry on the Romanian market as its goal this year, a market they consider to be very attractive, market sources say.
Furthermore, the outcome of the Credisson deal could help bring about a shift in focus for many investors that took the strategic decision to enter Romania towards other opportunities on this particular market, such as Estima Finance (a consumer finance company developed by Romanian-American Enterprise Fund and "electrical" retailer DoMo) and Altex. Altex recently announced it would be launching its own consumer finance company this summer.
Credisson International SRL granted 105 million euros in loans last year, according to certain estimates, with turnover amounting to 12-12.5 million euros. adrian.mirsanu@zf.ro
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