Shareholders of Flanco International electrical home appliances chain have decided to split the company, a process which will separate Flanco's trading and financing activities.
The splitting process will precede major transactions that will lead to significant changes in the shareholder structures of Flanco and Credisson (the consumer credit company owned by Flanco), market sources have been saying.
The main change will be the exit of the Greek investment fund Danube Fund from both businesses, which indirectly holds (through Flanco Holding) 33% in Flanco and Credisson stock, according to the aforementioned sources.
These sources have also suggested that the fund will separate through a stock sale to other investment funds. Early this year, the Polish Enterprise Fund and the German DBG fund were in talks to take over Danube's participation in Flanco or Credisson.
After the splitting of the group, Flanco International will be left with the trade activities, while the newly established company Flancredit will become the majority shareholder in Credisson, a company that is currently under the direct control of Flanco International. The main shareholder in Flanco and Credisson is another Swedish investment fund, Oresa Ventures, with a 47% stake.
"Flanco and Credisson have different needs, with regard both to management and financing. We will develop them separately, with different partners. Oresa will continue to be the majority stakeholder in the two companies, even after new partners enter the businesses," Cornel Marian, a representative of Oresa Ventures in Romania, told Ziarul Financiar. Marian was unwilling to offer further details concerning the future transactions that will modify the shareholder structure of Flanco and Credisson.
Danube Fund, an affiliate of the Greek group Alpha Bank, kick-started procedures for the sale of its participations in Flanco and Credisson last year as the end of the fund's life-span drew near. The representatives of Danube Fund in Romania were unwilling to comment on the information regarding the stock sale.
Several European investment funds have been interested in taking over the stake held by Danube Fund, given the booming sales in electrical home appliances in 2003 on the Romanian market.
Last year, Flanco reported turnover worth 120 million euros, as compared to 55 million euros in 2002. For 2004, the company targets sales of 170 million euros.
laurentiu.ispir@zf.ro
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