Signus Romania Distribution company, which, together with Murfatlar, Euroavipo Posta Calnau and Romdrinks Eurotrade, is part of Euro Group, has acquired the bottler of Bibco Biborteni mineral water.
"Starting this year we have a new shareholder: Signus Distribution Romania, which bought 99% in Bibco. The deal was sealed late January and consisted of the sale of the stake held by Contransimex and of my stake," said Radu Preda, Bibco general manager.
He did not disclose the value of the deal. Wine industry sources put the value of the deal at around 1 million euros. The new owners pledged to pay Contransimex's debts to AVAS. Other domestic investors also expressed their interest in the Biborteni deal.
Signus Romania officials chose not to comment on the transaction until the deal is approved by the Competition Council.
Previously, the main shareholder in Bibco Biborteni was Contransimex with a stake of 79.8%. Contransimex was split off from the foreign trade company owned by the state during the communist period and has entrepreneurial, building, civil and international freight transportation activities. The company developed debts to the state following some guarantees received from the Ministry of Public Finances that it did not repay. The debts Contransimex has to the State Asset Resolution Agency (AVAS) - around 12.2 million dollars (9 million euros) - are the main reason behind the sale of the stake owned in Bibco. Preda's own stake of 18.76%, which he acquired from Eurom Bank in 2003, was sold within the same transaction. With an annual turnover of almost 8.5 million euros, the Bibco plant produces both mineral water and carbonated soft drinks. With a market share of 7.4% on the carbonated mineral waters segment, Bibco Biborteni ranks fifth after Dorna, Borsec, Izvorul Minunilor and Perla Harghitei.
Preda says distribution has been the main problem. "Costs and the quality of the mineral water are similar to that of major rivals, but distribution has not reached the same level. This is also the reason why production has not been used to the full. Signus Distribution Romania, one of the most powerful distribution companies on the market, will secure a much stronger presence of products on all sale channels," he said.
georgiana.stavarache@zf.ro
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