Yioula Glassworks moving in on Stirom

Romanian glass plant Stirom Bucharest is about to be taken over by Greek company Yioula Glassworks – Greece’s second largest company operating in this field, under a transaction estimated at more than five million dollars, market sources say.
The proceedings aimed at changing the shareholding structure have already started on Rasdaq, where Stirom is listed. The company’s main shareholder – the Stirom Association of Employees (PAS) yesterday said its 51% stake in the plant had dropped to 46%, following several transactions that were concluded for more than 50,000 ROL/share. Considering this price, the total value of Stirom amounts to 10.5 million dollars.
Although the market had been abuzz with rumours of the Greeks’ interest in Stirom for quite a while, Yioula Glassworks never did voice plans to take over the Romanian company. On the other hand, three investment funds registered in Cyprus and which might belong to Yioula bought into Stirom several months ago. Two of these funds (Windy Holdings and Berlino Investments) own 9.1% in Stirom each, while the third (Gazon Holdings) has 5.03%.
Most of the shares were bought from one of Romania’s biggest funds, Romanian Investment Company Cyprus (RIC), which used to own 18% in Stirom.
The takeover operations have been extremely low-profile so far, as none of the new funds was allowed to buy more than 10% in Stirom. According to securities legislation, a public purchase offer must be launched for this level to be exceeded. However, this means the interested investors must reveal their identity and state their intentions regarding the respective company.
Rasdaq this week saw special transactions involving 9.8% of Stirom shares, thus PAS may have further diminished its stake.
Six months ago, Ionel Blanculescu, chairman of the Banking Assets Resolution Authority (AVAB), said AVAB had been in touch with officials of the Greek company. The talks revolved around Yioula becoming a Stirom shareholder by conversion into shares of a $3.35m receivable AVAB held on the Romanian company.
“If Yioula pledges to pay the receivable within 30 days, then AVAB will not put out a public sale offer and the deal can be completed on the spot,” Blanculescu then said. The cession of the receivable was tied to several conditions: the Greeks could neither ask for the plant to be closed down or liquidated, nor for a change in the company’s core activity.
Besides its production facilities in Greece, Yioula Glassworks holds glass plants in Bulgaria and the Republic of Moldova. The company’s consolidated turnover last year amounted to 120 million dollars.
Stirom last year posted revenues worth 18.7 million dollars and net profit of 440,000 dollars.