US giant Cargill, a world-leader in grain trading, will pay some 30 million dollars for the two plants owned by Topway Industries Craiova in Podari and Craiova and for the rights to use the Bunica ("Grandma") brand.
According to sources in the edible oil industry, the three Topway Industries shareholders will receive two to three million dollars for the main stake, with the rest of the transaction being the settling of Topway's financial obligations to the banks.
The deal is to be closed by the end of the week and will include the sale of 51% of Olpo Podari, since the edible oil refinery in Craiova, the bottling operations and the Bunica brand are to be transferred as assets from Topway to Olpo Podari, sources say.
Three private shareholders each hold 32% in Olpo Podari: the Romanian Doru Stanescu, German Andreas Friedman and Lebanese businessman Salame Badr. The remaining 4% in shares is owned by various other individuals, each of which holds up to 0.1%. After the transaction is completed, the three sellers will each be left with 15% in stock, which they will sell to Cargill over the next four to seven years.
The acquisition of the two plants is Cargill's biggest move on the European edible oil market to date. The Americans already own smaller production facilities for vegetable oil in the Ukraine. According to the same sources, the American group's plans will not end here, as they are already eyeing a further two plants on the Romanian market.
Cargill Agriculture officials would not comment on the transaction. "At this stage, we have no official position regarding this issue," said Andrei Grigore, Cargill Agriculture head of operations.
When contacted by Ziarul Financiar, Doru Stanescu, who is one of the sellers, refused to comment on the deal with Cargill.
The Podari edible oil plant is one of Romania's largest. By the end of the year, it will have a daily production capacity of 1,200 tonnes, double last year's level before a 14m-euro investment programme was initiated.
Those selling shares under the Olpo deal are also shareholders in Topway Craiova, where Doru Stanescu also holds a 52.8% stake, after having recently bought back 41.2% of the shares from the investment fund Baring Central Europe Fund Investment. Lebanese businessman Salame Badr owns 22.9% in Topway, having purchased a 15% stake from the Ilinca family in Craiova. Friedman owns 18.9%.
Topway Industries last year posted a turnover of 34 million euros, with losses amounting to 4.5 million euros and total debts of 31 million euros. In 2002, the company's turnover was 41 million euros, while losses were 5.4 million euros, and debts 33 million euros.
Earlier this year, Cargill bought Comcereal Alexandria in a $26m deal, which made it Romania's largest grain storage company with an annual capacity of almost 900,000 tonnes.
Baring Central European Fund (BCEF) entered Topway in 1999, following a $9.5 million capital increase, but started an exit process in 2002, when it sold the company's margarine and ketchup division to Norwegian group Orkla Foods.
stelian.negrea@zf.ro ; adrian.mirsanu@zf.ro
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