Flanco, the largest home appliances retail chain in Romania, might go through a change in owners by the end of the year, as the current shareholders, two investment funds and a Romanian businessman, are now about to complete talks on relinquishing control of the company, sources close to the deal say.
This business has a number of investors interested, the most significant of which is an investment fund held by Germany's Deutsche Bank, according to the quoted sources. The company is also alluring to regional fund AIG New Europe Fund II, part of the US financial group AIG, one of the largest in the world.
The sale of more than 50% in Flanco will be one of the most important deals on the Romanian market this year, as it involves a company that will sell more than $100 million's worth in 2003.
Talks over the sale of Flanco have been conducted several times over the last few years, but this time, the foreign investors' interest is somewhat more manifest.
At present, the company is controlled by Swedish investment fund Oresa Ventures, which holds about 47% and by Greek Danube Fund - 33%. The rest of the shares are held by the company's founder, Florin Andronescu.
The two investment funds bought into the business six years ago in order to help the company grow and then sell to a strategic investor. The company has not grown enough to be attractive to strategic investors, yet large European funds have entered the market in the meantime and they want to buy and help Flanco continue its development in order to sell to the major specialised groups in the end.
"It comes as no surprise that the investment funds holding stake in Flanco would at some point exit," Marius Ghenea, Flanco's general manager said. He did not care to provide additional comment on the possible change in the shareholding structure though.
Danube Fund and Oresa Ventures representatives would not comment, either.
At present, talks are being conducted over the manner in which the deal will be closed, the quoted sources say. Danube Fund and Florin Andronescu might sell their entire stake, while Oresa Ventures only some of it and retain a minority interest.
Even though rumour had it last year that Flanco would be bought by a strategic investor, also a major European player, no such offer has been submitted thus far.
Sources on the market say that neither Media Markt, German Metro Group's home appliances retail division, nor Darty or Dixons, the other major electronics and home appliances retail players are not contemplating Romania. At least not for now. ionut.bonoiu@zf.ro
Pentru alte știri, analize, articole și informații din business în timp real urmărește Ziarul Financiar pe WhatsApp Channels
