Romferchim Bucharest, a company set up as a spin-off of a Romanian foreign trade company back in 1991, is planning to buy drug maker Antibiotice Iasi, still state-owned.
In order to bid for Antibiotice, Romferchim is conducting partnership talks with a German-based company Sanavita, held by Ostermann Agency, international drug producer and trader.
Romferchim used to be the main shareholder of another large drug maker, Terapia Cluj-Napoca, until two years ago. At the moment, it still holds some 17% in Terapia.
Antibiotice is the only major drug maker still owned by the Privatisation Authority (APAPS). The 53% held by APAPS were put up for sale again on September 10, after previous privatisation attempts have failed over the past few years due to the lack of viable offers.
“We and Sanavita were supposed to bid separately at first. Each of us had different partners (Sanavita was supposed to join forces with a Canadian company), but we may eventually team up,” Ioan ?etu, one of Romferchim’s managers and chairman of the board at Terapia, told Ziarul Financiar.
APAPS sources say Romferchim and Sanavita are willing to pay up to $4.5-$5 million for the 53% in Antibiotice.
“We have not discussed the exact amount of money each of us should come up with, yet it is likely we will go fifty-fifty. We are looking for financing, anyway,” ?etu specified.
Antibiotice is listed on the Bucharest Stock Exchange, with the share price reaching 1,100 ROL, that is a total market capitalisation of 11 million dollars. This year’s net profit is estimated at 2.5 million dollars.
Romferchim is one of the largest fertilisers and chemicals exporters in Romania, although this is only part of its many businesses. Its total export and import operations value reached 100 million dollars in 2000.
Ioan ?etu says Antibiotice is currently selling half of its output through Romferchim.
Romferchim was privatised by MEBO in 1994 and was taken over by the management. The company holds large stakes in several Romanian companies, Amonil Slobozia included. The other significant shareholder of Amonil is another trade company, Eurotrading International, part of Euro Columna Group.
Antibiotice will make $30 million in turnover this year, aiming at $2.5 million in net profit. The company has had a good year so far, trying to rebound from the declines (in market share and financial indices) posted over the past few years.