In 2009, only 4 deals in M&A market involved stock market issuers, while last year of the 86 deals completed, only 17 engaged issuers. Analysts polled by Wall-Street examined the implications of mergers and acquisitions market in the activity of the local stock exchange trend.
Implications of the stock market in the M&A activity is narrow
In first quarter 2009, 4 M&A deals completed in the stock market landscape, and 17 last year, according to Raiffeisen Investment data.
“From our point of view, the level of importance is given by the percentage of securities on the negotiation table. Generally, we consider that the transfer of a stake larger than 5% is not a speculative act”, Ioana Filipescu (photo), managing director of Raiffeisen Investment Romania told Wall-Street.
After a peak of roughly 5,500 companies listed at Bucharest Stock Exchange and Rasdaq between 1997 and 2000, now there are only 1,772. The majority of these companies are listed at Rasdaq (1,703), who are more or less actively traded due to its narrow free float and transparency.
“Therefore, it was very likely to see a new round of deals involving these companies, although it is not yet well defined the role of capital market as an instrument in dealmaking,” said Ciprian Paltineanu, head of UniCredit CA IB Romania.
Deals 2008
BuyerTargetTarget SectorStakeValue (EUR mio.) Tender Group Pupin Telecom Telecoms, Media, Technology 25% 3.25 Macon Deva Simcor Industry 100% 53 Remedio Sanifarm Wholesale & Distribution 40% 0.4 Agrisol/Interbrands Toneli F&B 100% n/a RIF and RC2 Limited Policolor Industry 33% 27.58 Farmasan Suinprod F&B 91% 6 Bere Azuga Perla Covasnei F&B 39% 1.2 Weatherford Atlas Gip Industry 86% 17 AERO Vodochody Avioane Craiova Industry 81% 16.3 Private Investors Giurgiu Port Transportation & Logistics 77% 3.5 Macon Deva Simbeton Industry 40% 0.9 Pri
