Famous American investor George Soros is taking a closer look at the Romanian market, as one of his funds is ready to invest here. The main industries the Soros Investment Capital fund will target in the SE European markets, Romania included, are foodstuffs, distribution, retail, pharmaceuticals and possibly telecoms, said Gavin Ryan chief executive of Soros Investment Capital Management LLC, the administrator of the investment fund.
"We are now looking for investment opportunities in those sectors. We have not decided how much to set aside for the Romanian market yet, but it will be a significant percentage of the total fund's value, that is $200 million," Ryan specified, adding the fund would enter the market this year.
The Soros Investment Capital representative explained that the fund would buy either on its own or by teaming up with another entity, with all its acquisitions in Romania set to be controlling interests. "Minority stakes lead to various problems," Gavin Ryan said.
Furthermore, he said the quality and dynamics of the management weighed heavily on the investment decision. On the other hand, the Soros Investment Capital representative added the Romanian market was becoming "more and more interesting" because it is one of the largest in the region and because of its EU accession prospects.
Ryan, however, said he was not interested in the Romanian Stock Exchange. Established in November 2000 with sponsorship and management provided by the Soros Organisation, Soros Investment Capital has $200 million total capital available, out of which $5-$30 million are allocated to each investment. Another supporter of the investment fund is Overseas Private Investment Corporation (OPIC), a US governmental agency.
The first investment of Soros Capital Investment was made in Macedonia Telecom in January 2001. The fund's portfolio now comprises six more investments, that is the cable TV operator Digital Center Media (Croatia), Eksimbanka (Serbia), Nova Banka (Croatia), cable operator Eurocom Cable (Bulgaria) and KDS Serbia Broadband (cable operator), as well as a regional investment in Efes Breweries Intl.
Soros Investment Capital has regional centres in Belgrade and Istanbul, as well as country offices in Bulgaria, Georgia and Azerbaijan and representative offices in Bucharest, Istanbul and Erevan (Armenia).
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