December 16 (SeeNews) - Romanian construction holding company Roca Industry [BSE:ROC1] said that it concluded a 1 million euro ($1.06 million) loan agreement with its parent Roca Investments to enable local unit Doorsrock to pay for for 30% of the shares of Eco Euro Doors (EED).
Roca Industry granted Doorsrock a 350,000 euro loan, the holding company said in a statement filed with the Bucharest Stock Exchange, BVB, on Thursday.
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In addition to fulfilling the payment of EED shares, the loan also targets a share capital increase for Doorsrock.
The 1 million euro loan was taken out by Rock Industry on December 14, while the 350,000 euro loan was granted to Doorsrock on the following day. Both loans have a 12-month maturity term and are to be repaid at the exchange rate applicable on the payment date.
After the payment of the first instalment, expected to take place on December 16, Roca Industry will acquire the exclusive ownership of EED’s remaining 195,305 shares with a nominal value of 10 lei ($2.16/ 2.03 euro) per share through Doorsrock, thus becoming the sole shareholder of EED.
The second instalment will be paid by January 31 2023 through a credit facility.
Roca industry, through Doorsrock, first acquired 70% of EED in January, while the remaining 30% stake was purchased in November for 4.3 million euro.
EED is a Romanian manufacturer of doors for residential constructions. In 2021, it booked a net profit of 7.25 million lei, and a turnover of 56 million lei. The company has 95 employees, according to finance ministry data.
Roca Industry’s lender, Roca Investments, is a Romanian private equity firm that holds a 59.88% stake in the holding company.
Roca Industry was founded by Roca Investments in 2018 and operates as a holding company specialising in Romanian construction material producers. In 2021, Roca Industry posted a net loss of 175,042 lei and 172,468 lei in total revenues, data from the finance ministry indicated.
Roca Industry is the sole shareholder of Doorsrock, according to a statement filed with the BVB in April.
Roca Industry shares traded 2.32% lower at 8.01 lei by 1017 CET on Friday, on the BVB.
($=0.9417 euro)