Gaz Vest to change hands this year

Following the takeover of Vitalgaz by US-based Pelagas about a month ago, the private gas distribution market might see yet another major deal this year.

Gaz Vest, one of the leading players on the market could be sold by its majority shareholders, investment fund Environmental Investment Partners (EIP) and Societatea de Investitii Financiare (Financial Investment Company – SIF) Banat-Crisana. Talks are now held with several companies interested in an acquisition, sources on the market say.

EIP became a Gaz Vest shareholder in 2001, following a $3.3 million investment and now holds 29% in the company. SIF Banat-Crisana came on board last year when it acquired 25% after a $3 million capital increase.

“We are in talks with a number of investors, which are both companies in the industry and investment funds. We have not reached an agreement yet,” Ioan Cuzman, SIF Banat-Crisana chairman told Ziarul Financiar.

“We are not at liberty to disclose anything at the moment,” Rafal Malecki, EIP’s investment analyst said.

The interest in Gaz Vest is explained by the fact that it is the only major private gas distributor in Romania still lacking a strategic investor among its shareholders. Vitalgaz, which operates in the Brasov and Bucharest area has just been bought by Pelagas, whereas German group Ruhrgas holds approximately 28% in Congaz Constanta.

Furthermore, Gaz Vest is the leading private distributor in the Western area (Arad, Bihor and Timis County), which is considered to have a high growth potential.

On the other hand, Gaz Vest has been the object of a dispute between its management and shareholders for nearly six months.

At the end of last year, SIF Banat-Crisana subscribed $3 million’s worth in shares and refused to pay half of that amount demanding an audit of the management. The audit resulted in the prosecution of Liviu Ilievici, Gaz Vest chairman, for $1 million in damages caused to the company according to the info on the corporate website.

“We transferred the remaining $1.5 million of the capital increase early this year. The money that is missing will probably be recovered by subtracting Comera SA’s interest in Gaz Vest,” Cuzman specified. Comera is a construction company controlled by Liviu Ilievici and holds 46% in Gaz Vest.
laurentiu.ispir@zf.ro