(story to be published in tomorrow’s issue, March 13)
The State Ownership Fund and Italian company Fergat SpA, belonging to Magnetto Wheels group, on Thursday signed the sale-purchase contract for a 50.87 percent stake in Romanian company Roti Auto Dragasani. The transaction value, which includes the price of the stake and investments for the years to come, to be accomplished by a share capital increase at Roti Auto Dragasani, amounts to 8.6 million euros. The foreign investor pledged in the contract concluded with SOF to take over debts posted by the company, accounting for 17 billion lei. According to SOF deputy general manager Nicolae Boeti, the foreign investor has also pledged to keep, for the next two years, the 621 employees of the Romanian company. “We intend to gradually develop the auto wheels production, so as to reach a 7 million piece -target in 2005, become the main supplier for Automobile Dacia company and export to Turkey, Hungary and Bulgaria,” said Louis Falzi, foreign affairs director for Magnetto group. Last year, Roti Auto Dragasani manufactured 700,000 wheels, out of which 100,000 pieces were exported and the rest went to companies such as Aro Campulung, Dacia Pitesti, Daewoo Craiova and Rocar Bucuresti. Turnover posted last year by the Romanian company amounted to 85.6 billion lei.