Ioan Balan, who in mid-2007 sold his entire stake in dairy producer Covalact to US investment fund SigmaBleyzer, in a deal put at 7 million euros, says he is likely to invest part of the capital from deal in developing a new production business or in agritourism.
"I plan to make further investments, not set up a new company, but seal collaborative partnerships with already existing companies that operate in production or tourism (i.e. agritourism), with real estate definitely ruled out as a possibility, due to my lack of experience in this field," stated Balan.
Although he withdrew from the business and parted with his 70% stake, Balan retained his position as general manager. "One of the conditions of SigmaBleyzer when they took over Covalact was for me to remain part of the management," he explained.
Ioan Balan explained the initial idea of selling the company came up several years ago, in 2003, after he signed the partnership with Campina.
"Through this partnership, Campina had the right to buy my stock after three years and become Covalact's majority shareholder, but this hasn't happened. At the end of the three-year period, Campina representatives said they were no longer interested in becoming Covalact shareholders, which is when I started to look for another buyer," explained Balan.
He added that initially he had talked exclusively with strategic partners, foreign companies that wished to enter the Romanian market and even with another two investment funds already present on the market, but refused to reveal any names. The first talks with SigmaBleyzer were held in the second half of 2006 and the deal was eventually finalised in August 2007.
"I wanted to sell to a company that would not let Covalact die and invest in its development and growth".
"Our objectives are now directed towards acquisitions on the Romanian dair
