Enterprise Investors completes integration of Macon and Simcor
Polish investment fund Enterprise Investors announced it has completed the integration of Macon and Simcor into one holding company that specialises in production of construction materials, whose ACC (autoclaved cellular concrete) production will rise 14% by the end of 2010. The management of Macon-Simcor announced it has invested 2.5 million euros since the beginning of the year to boost productivity of companies within the holding, with 7.5 million euros in investments scheduled for 2010. “For the 2009-2010 period we have planned investments worth around 10 million euros, a quarter of which have already been completed,” Marius Dumitru Marin, CEO of the Macon-Simcor group told ZF Transilvania. The consolidated turnover posted by the Macon-Simcor group was around 231 million RON (over 63 million euros). Group representatives did not wish to give forecasts on this year’s turnover. “We expect the constructions market will decline by around 30% on average by the end of the year, with the progression differing from one sector to another. The masonry materials market will fall by 30-35%, the lime market by 10%, and the precast concrete products market by 45-50%,” says the manager of the Macon-Simcor group. ZF
Hornbach starts building store on former site of Prisma
DIY retailer Hornbach, which in 2007 bought the former location of the Prisma complex near Bucharest, will soon start construction works for the store on this plot, with the opening set for 2010 or 2011. The investment in this project is estimated to amount to 40 million euros. Since the acquisition of the plot by the National Road 1 (DN1), German-held Hornbach has been seeking a retailer that would join them at this location, but no lease or sales contract has been signed so far. “The company decided to start construction works for the store on the DN1 location. We could start this year or in the spring of 2010 at the latest. It is too early to say now whether the store will be opened next year or in 2011,” said Dan Badescu, expansion manager of the Hornbach Romania chain. He added the retailer was targeting several locations for expansion in the next few years. ZF
Leonardo closes 40 stores in Hungary
Leonardo, the largest retailer on the Romanian clothing and footwear market, with 136 million euros in turnover, which filed for insolvency last month as pressured by creditors, continues its restructuring plan, with the next stores targeted being located outside Romania, in Hungary, the Republic of Moldova and Bulgaria. “The company has already closed 40 stores in Hungary, while for the rest of them an around two-month term and has been proposed, until the end of the year, for a decision to be made on whether to close the stores or whether they should remain open in the three countries. The Leonardo management will decide what to do with the stores after the annual balance sheet, after the end-of-the-year inventory,” said Radu Lotrean, managing partner of Casa de Insolventa Transilvania (Transylvania Insolvency Firm), which handles the company’s restructuring. ZF
Town of Oravita, first instance of overdue bond payment
The Oravita town hall is the first municipality late on bond interest payments over the last few years, a first red flag for those investing in municipal bonds. A number of 27 bond issues are listed on the Stock Exchange, issued by 16 municipalities and county councils, whose value amounts to 623 million RON (145 million euros). Last year, the Oravita town hall borrowed 6 million RON (1.4 million euros) via a bond issue, which matures in 2027. On October 23rd, the town hall was supposed to pay the 464,400-RON interest rate (second coupon) to investors holding Oravita bonds (ORV27 – stock exchange symbol). With unpaid debt worth 170,000 RON to utility company Enel, the town hall’s accounts were frozen, which rendered the town hall unable to pay the debt owed to investors. “The State Assets Resolution Authority (AVAS) has frozen our accounts due to a 170,000-RON unpaid debt to Enel. Our debt was rescheduled, and restructured into six instalments, to enable our accounts to be unfrozen. We will pay the interest as soon as the accounts have been unfrozen,” said Ion Goga, mayor of the town of Oravita. ZF
Ulker buys back 40% of shares of Romanian plant
Turkish group Ulker bought back 40% of the shares of its
Romanian plant from German fund DEG, in a transaction sealed a few
months ago, as part of a put and call option agreement. This makes
Ulker, Turkey’s largest food producer, the sole owner of the
confectionery and savoury snacks plant in Popesti-Leordeni (Ilfov
County), which opened in 2006. DEG, an investment fund held by the
German state, which is part of the KfW Banking Group, became a
shareholder of the Romanian Ulker plant in 2006 through a 3.8
million-euro capital contribution to be used for investments in
production. “DEG exercised its right to exit the shareholder
structure of Ulker’s Romanian plant. This was provided for in the
partnership sealed in 2006 with Ulker shareholders, with DEG having
three years to exercise this right,” specified Ender Bolat, general
manager of Ulker Romania. The plant held by the company on the
Romanian market currently has three production lines, the same as
when it was inaugurated. Products of the Romanian plant include
sweet biscuits Biskrem and Petit Beurre, and Clip salty
sticks.