BUCHAREST (Romania), September 15 (SeeNews) – U.S.-based QVT Fund LP sold its entire 21.96% stake in Romanian electronics and IT retailer Flamingo International for 5.1 million lei ($1.8 million/1.2 million euro), the intermediary of the deal, KBC Securities, said on Tuesday.
QVT Fund LP sold the 171.1 million shares it held in Flamingo International for 0.03 lei per share to an unnamed buyer on Monday. The company did not elaborate on its reasons for exiting the company.
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“QVT has recently contested in court the decisions of the last general shareholders meeting to issue convertible bonds of up to 29 million lei and QVT’s contestation led to the postponement of the bonds issue,” Raiffeisen Capital & Invemstment (RCI) said in a note to investors.
“QVT’s exit does not guarantee that the charges will be dropped, however we believe that there is a high probability that this will happen, as continuation of the trial would not benefit QVT, the company or even the unknown buyer. Therefore we view the news as positive,” RCI added.
Flamingo International shares closed up 2.03% at 0.0352 lei on the Bucharest Stock Exchange on Tuesday.
QVT Fund LP and individual investor Cinca Dragos Daniel were the largest single shareholders in Flamingo as of August 31 with respective stakes of 22% and 25.2%, bourse data showed.
(1 euro = 4.2669 Romanian lei)