BUCHAREST (Romania), August 4 (SeeNews) - Romanian plastic products maker Teraplast Group [BSE:TRP] said on Friday that it has signed an agreement for the purchase of a further 50% stake in local peer Politub for an undisclosed sum, aiming to become sole owner of the company.
The transaction is pending approval from Romania's anti-trust body, Teraplast said in a press release.
Following the acquisition of a further 50% stake in Politub held by France's Socotub, Teraplast will own 99.99% of the company's share capital, while TeraSteel, a company owned by Teraplast, will have 00.01%.
"One of the main reasons for the acquisition was the Group’s wish to have a better control over the company and to be able to implement decisions much faster, in accordance with market requirements," Teraplast Group CEO, Mirela Pop, said. "Another important aspect is that we intend to develop this segment of products, which is complementary with the rest of the Group’s business lines."
Politub is a subsidiary of Teraplast set up in 1994 in association with oil and gas group Rompetrol, now owned by KazMunayGaz, and French companies Gaz de France and Socomo-Socotub.
Politub manufactures medium and high density tubes and pipes for the transport and distribution of water, gas, sewer or irrigation, fittings and segments, and polyethylene corrugated pipes. The polyethylene pipes plant of Politub, located in Teraplast Industrial Park, has an annual production capacity of over 10,000 tonnes.
On Tuesday, Teraplast said its first-half net profit dropped 59% on the year to 7.89 million lei ($2 million/1.7 million euro) due to stagnation in infrastructure investments and client insolvency. Teraplast's turnover dropped 11% on the year to 171.6 million lei in the six months through June, as sales in the infrastructure field halved compared to the same period last year.
At the beginning of the year, Teraplast expanded in Serbia as part of plans to boost exports and set up a limited liability company. In June, it bought a sandwich panels plant in Serbia that will double the panel production capacity of the group.
Also in June, Teraplast acquired a further 10% of Romanian roof tiles maker Depaco, boosting its stake in the company to 60%.
Teraplast was founded in 1896 in Bistrita, in northern Romania, as a ceramic tiles manufacturing unit.
In 2008. Teraplast listed on the Bucharest Stock Exchange, BVB.
Teraplast shares were traded 2.23% higher at 0.4580 lei on the BVB by 1025 CET on Friday.
(1 euro=4.5632 lei)