Investment fund Romanian Investment Company Cyprus (RIC) sold its five percent interest in aircraft engine and subassembly maker Turbomecanica Bucharest on the Stock Exchange on Friday.
The buyers are, sources on the market say, the managers of the company, who already control 63.62 percent through the employees’ association (Turboact).
The stake changed hands in two deals closed at 26,500 ROL/share and was therefore worth approximately 600,000 dollars.
RIC’s representatives and Turbomecanica managers could not be reached for comment on information about the deal. #leadend#
Romanian Investment Company Cyprus used to be one of the most important investment funds in Romania, which started out with more than 40 million dollars invested in various major Romanian companies (Terapia Cluj, Arctic Gaesti, Alro Slatina, Banca Transilvania, Antibiotice Iasi, Compa Sibiu, Rolast Pitesti, Imsat Bucharest).
The fund will cease to exist this fall, for which reason it began to sell all its interests as early as in 2002.
RIC has exited most of the major companies in its portfolio thus far, with the five percent in Turbomecanica among the leftovers.
The employees’ association Turboact has been controlling Turbomecanica since the company’s privatisation, but the majority stake also had US group General Electric (GE) come looking two years ago.
General Electric, Turbomecanica’s main client contemplated the possibility to buy Turboact’s shares, but the association was prevented from selling by the privatisation contract still in effect.
General Electric and Turbomecanica in the end established a joint venture, which makes parts for aircraft engines. The entire output of the joint venture, worth several million dollars a year is purchased by GE Aircraft, General Electric’s specialised division.
Turbomecanica posted 10.42 million dollars (338.85 billion ROL) turnover in the first half, up 22 percent since the same time last year. Profit moved up at about the same pace, from 1.06 million dollars in the first half of 2002 to 1.28 million dollars in the first half of 2003.
Turbomecanica is listed in the first tier of the Bucharest Stock Exchange (BSE), where it closed at 33,300 ROL on Friday.
The market capitalisation of the company revolves around 15 million dollars.