The deal by which PPF Investments took over 100% in Gaz Sud will be followed by further acquisitions.
The Czech investment fund's goal is to create a solid base on the Romanian market, built around Gaz Sud. According to market sources, the deal totalled 50 million euros, which makes it one of last year's biggest domestic transactions.
"We needed a strong investment fund that understood the firm's policy, but could also provide funds to support our policy. We also held talks with domestic operators, but in these cases the entity attempting to take you over imposes its own policy on you," says Viorel Gheorghiu, general manager of Gaz Sud.
According to Gheorghiu, talks with PPF Investments were finalised as early as last year, however, the deal is still in progress for the time being. So far, the first phase, where a 35% stake in the company is transferred to the investment fund, has been completed. The deal is scheduled for completion in late May. The buyer was Ligatne Limited of Cyprus owned by PPF Limited Jersey Czech investment fund.
According to his own statements, prior to the deal Gheorghiu held a 42% stake. The shares were taken over in 2004 from the old shareholders. According to the Competition Council, which did not raise any objections concerning possible economic concentration, the rest of the shares were held by two individuals and Dorox Construct (12% stake).
According to Gheorghiu, the domestic market is following a global trend and is in the early stages of becoming consolidated.
"We now have assets worth 35 million euros and a 400-km network, whereas 3 and a half years ago we had a 30-km network and assets worth just 2m euros," says Gheorghiu. According to him, the most important aspects taken into consideration when assessing a firm is the growth potential of the area where the company operates, the level of custom
