July 28 (SeeNews) - Dutch-based maintenance and engineering services provider Dietsmann plans to use the acquisition of Bulgaria's Energoremont Holding [BUL:6EG] as a stepping stone for expansion in Bulgaria and in the Balkans region, a senior representative of Dietsmann has said.
Dietsmann aims to increase Energoremont's market share in Bulgaria and its presence in neighbouring countries, Rossen Hristov, regional director of Dietsmann for Eastern Europe, told SeeNews on the sidelines of a news conference on Thursday.
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Dietsmann has acquired 97% of Energoremont Holding shares for an undisclosed sum, while the remainder is owned by individual minority shareholders, Hristov told the news conference. He noted, however, that the market capitalisation of Energoremont on the Bulgarian Stock Exchange is very close to the purchase price.
Hristov pointed out that Dietsmann had stepped into the acquisition for reasons, which include interest in projects in Romania and Macedonia, a coal mining project in Bulgaria's Radnevo, nuclear power sector capabilities and oil refining operations at Bulgaria's Lukoil Neftohim refinery.
Bulgaria’s competition authority gave the green light to Dietsmann to acquire Energoremont Holding earlier this week, saying the deal would not affect competition on the domestic market as neither Dietsmann, nor any of its subsidiaries, operate in Bulgaria.
There is potential for expansion of Energoremont Holding's operations in big companies in Bulgaria it currently serves, such as the two coal-fired power plants of US-based AES and ContourGlobal, soda-ash producer Solvay Sodi and Devnya Cement, Hristov said on the sidelines of the news conference. To that end, Dietsmann will focus on developing further Energoremont Holding's core activities - rehabilitation, reconstruction, modernization and construction of power systems in power plants.
The new majority owner plans to integrate new systems for enterprise resourse planning, management and procurement at Energoremont Holding, Hristov said.
Energoremont Holding's market capitalisation was 76.9 million levs ($46 million/39.28 million euro) as of July 26, data from the Bulgarian Stock Exchange showed.
Energoremont Holding will most likely be renamed to Dietsmann Energoremont following completion of the acquisition, Hristov said.
Dietsmann was founded in 1977. Its operations include maintenance services for continuous-production plants in the oil and gas, power and mining industries.
Energoremont Holding closed last year with a net loss of 12.3 million levs on revenues of 38.2 million levs.
(1 euro = 1.95583 levs)