Sweets maker Excelent Bucharest took over the main stake in Kandia Timisoara from investment fund Rivta GmBH, under a complex transaction worth $6 million.
The acquisition of Kandia shares, accounting for 59.89% of the company's capital, may be followed (according to Excelent officials) by a merger between the two companies, set to create the largest sweets company on the Romanian market.
"We have not exactly determined the acquisition's effect at the operational level, yet. This is undoubtedly a consolidation on the sweets market and we may launch procedures for a merger able to turn us into the most powerful company on the market," Sorin Alexandru, Excelent general manager, told Ziarul Financiar.
Excelent and Kandia will jointly hold 40% of the Romanian chocolate market, outgrowing international group Kraft, which now holds a 35% share.
The stock acquisition was made as Excelent took over the debtor position in the sale-purchase contract drafted between Rivta and the former State Ownership Fund (SOF). Practically, Excelent takes over, in exchange of the $6m to be paid in instalments, the rights and obligations deriving from the Kandia privatisation contract.
The takeover also marks the end of the transactions that saw businessman Fathi Taher and investment fund East Europe Development Fund become the main shareholders of Romania's largest sweets producer (Excelent plus Kandia).
Excelent last year posted sales worth $26.4 million and $3m profit, while the turnover estimated for Kandia is 9 million dollars.
East Europe Development Fund bought Excelent in 1999, through Axis Investments, whereas Rivta acquired Kandia in 1998.
Recent market rumours had it that Rivta was an investment fund controlled by Taher, who used it to acquire many Romanian companies, such as Kandia, AGI (insurance company), Romarc Fuel (now Petrom Aviation). There was also information pointing to Taher as the main shareholder of Excelent.
However, the businessman has never commented on this information.
"I am just one of those that have invested through Rivta or East Europe Development Fund. Kandia's takeover by Excelent does not mean we have let go of Kandia. We are still the shareholders," Fathi Taher told Ziarul Financiar.
East Europe Development Fund is a regional investment fund worth 120 million dollars, managed by Invesco CEAM, a company held by Invesco (one of the world's largest management companies) and the Dutch financial group ING. The fund was established to invest in several Eastern European countries, among which Romania.
laurentiu.ispir@zf.ro
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