Construction supplies distributor Ambient, controlled by businessman Ioan Ciolan could raise approximately 300 million euros from banks to finance the expansion of the store chain, which currently numbers 14 stores, according to the latest data available.
The company therefore upped the ante in terms of investments needed for expansion, considering the construction supplies distributor announced at the end of last year that it would allocate some 130 million euros from 2008 through 2010 to open 12 shopping centres.
"We need approximately 300 million euros to expand the store network. Whereas we were organised in several limited liability companies until last year, turning into a joint-stock company requires a more rigorous organisation," Ciolan told ZF.
Ambient this year began a merger of the 14 companies developed with partners throughout the country to build a single company where Ioan Ciolan owns about 75 percent and the rest of the shareholders are Gheorghe Calburean - 12 percent, Dan Olteanu - 5 percent, Lucian Bezerita - 5 percent and Zsolt Berecki - 2 percent.
According to information on the market, several investors are interested in the company, both investment funds and foreign companies in its industry, but Ciolan dismisses the idea of selling a stake for the time being.
"We are now conducting an internal audit to get a confirmation to use with the banks we will raise financing from. This audit is not necessarily done to sell the company or advertise. I am not considering this and want to conduct a top level audit," Ciolan says.
The company achieved an 11.5 percent increase in sales in the first quarter, to 42.4 million euros, lower than forecast at the beginning of the year, due to the bad weather in the first two months.
Ambient, however, anticipates its turnover will increase by 40 percent this year, to approxim
