Romanian American Enterprise Fund (RAEF) has become a shareholder in Domo Retail, the company that owns the Domo electronics and electronic home appliances network, following a complex transaction worth a total of 10 million euros. RAEF currently holds 20% in Domo Retail, though the transaction also involved a convertible loan. Further, RAEF and Domo Retail launched Estima Finance, in which both entities own stock.
"The partnership is the beginning of a new stage in the development of Domo activities and future developments will allow us to reach double turnover by 2007," said Lorand Szarvadi, Domo Retail CEO.
This year the company will see turnover of over 100 million euros, compared with the 87 million euros last year.
"After the first nine months of this year, our turnover hit 60 million euros, 18% higher than last year," added Szarvadi.
The deal between Domo and RAEF is the second in Romania this year after last month when the Flanco network attracted investment fund DBG Eastern Europe II following investment of 6.5 million euros.
Credisson, a company developed in the spin-off of the lending unit of Flanco, also attracted the foreign investment fund, Polish Enterprise Fund.
"Unlike Flanco, we already owned a consumer finance company, Ralfi, which became Estima Finance after we entered partnership with Domo," stated Horia Manda, RAEF senior deputy chairman. In fact, Domo will also be the first company Estima will collaborate with, with lending contracts to be sealed exclusively through Estima as of next year.
ionut.bonoiu@zf.ro ; vlad.nicolaescu@zf.ro
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