July 28 (SeeNews) - Romanian cardboard maker Vrancart [BSE:VNC] said on Thursday it has signed an agreement to take over a majority stake in local peer Rom Paper for an undisclosed sum.
The acquisition is subject to shareholder and antitrust approvals, Vrancart said in a bourse filing.
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The sales agreement will be performed for a period of two years and its amount will be influenced by the financial results achieved by Rom Paper. However, the value of the transaction cannot exceed the threshold of 10% of the net turnover of Vrancart, it added.
Also, the general manager and founding shareholder of Rom Paper, Claudiu Puchin, will remain in his position.
In 2015, Vrancart posted a net profit of 18.2 million lei ($4.5 million/ 4.07 million euro), up 4% from 2014, on a turnover of 210 million lei, up 6% on the year, data posted on finance ministry's website showed.
Rompaper was founded in 2002 in Cristian, Brasov county, central Romania. Its main activities are the manufacturing and trade of napkins, hand towels, toilet paper, professional paper towels, dry tissues for salon and SPA, and facial tissues. Its products are sold in 7 countries through chain stores and distributors.
Its net profit dropped 6.8% in 2015 to 2.5 million lei, while its turnover was up 18% on the year to 51.5 million lei, according to finance ministry data.
Vrancart was founded in 1977 under the name of "Combinatul de Celuloza si Hartie Vrancea" in Adjud, in the eastern county of Vrancea. It produces corrugated cardboard and toilet paper.
The majority shareholder of Vrancart is SIF Banat-Crisana [BSE: SIF1], which owns approximately 74.7% of the shares.
Vrancart shares were trading flat at 0.1745 lei by 1352 CET on Thursday on the BVB.
(1 euro= 4.4615 lei)