Former banker Doru Lionachescu and his associates have sold 51% of Capital Partners, the largest local investment brokerage firm, for 32 million euros to Greek-based Piraeus Bank. The deal also includes a subsequent option to purchase the rest of the shares in the coming 5 years depending on the financial results. This is the biggest increase in the value of a company in Romania, from zero to 64 million euros in just four years. Doru Lionachescu, 43, was one of the pioneers of Romanian business journalism, and, subsequently, local investment banking. A graduate from the Electronics Faculty, he worked for Tineretul Liber and Capital publications, and then ING Bank and Citibank from 1995.
Capital Partners has been a consultant for some of the biggest transactions on the local market lately - the acquisition of BT Asigurari by French-based Groupama (110 million euros), of real estate broker Eurisko by American-based CB Richard Ellis (22 million euros), and of the eJobs website to American investment fund Tiger (4.2 million euros). Piraeus, the fourth-largest bank in Greece and an ambitious player on the local market over the last few years, intends to develop a strong investment division in Romania, with operations throughout South-Eastern Europe. The bank is part of a group that had assets worth 49 billion euros last year. In Romania, it conducted capital increases worth 220 million euros last year, and had assets worth around 3 billion euros in March 2008.
"Sealing the deal under the current circumstances (i.e. during a decline of international stock exchanges and the strain experienced by financial markets) shows Piraeus's commitment to the Romanian market, and proves that the bank intends to have long-term commitments," said Doru Lionachescu.
Capital Partners has three lines of business - consulting for real estate acquisitions, corporate finance, and consulting for mergers and acquisitions. In 2007, the business volume revolved around 750 million euros, compared with 350 million euros in 2006, forecasting 1 billion euros this year.
The company posted business worth 5 million euros in 2007 and net profit worth 4 million euros, from 3 million euros in turnover and a 42,000-euro net profit in 2006. In 2005, it saw a 1 million-euro turnover and an 800,000-euro profit.
Piraeus bought 51% of Cypriot company Finnagan Holdings Limited, which holds 100% of Capital Partners. Finnagan was controlled by Doru Lionachescu (35% of the shares), Andrei Diaconescu (30%), Victor Capitanu (28%) and Vlad Busila (7%). The first three all worked at Bancpost before the establishment of the company in 2004. The four shareholders have reduced their stakes in the company proportionately.
The transaction also includes a series of real estate investments previously made by the four associates, which were consolidated within Finnagan Holdings at the beginning of this year. The four have committed, as part of the deal, to stay with the company for 5 years and develop operations in South-Eastern Europe, in countries that border Romania and in Turkey.
"We were already close to becoming operational in Moldova, Bulgaria and Serbia, and now this will be one of the company's strategic objectives," said Lionachescu.
Pentru alte știri, analize, articole și informații din business în timp real urmărește Ziarul Financiar pe WhatsApp Channels
