Copper and wire manufacturer Cuprom has hired international banks Merrill Lynch and Deutsche Bank to raise 600 million dollars (450 million euros) to finance the acquisition of assets and licences from RTB Bor, the copper mining site the Serbian state is selling.
"An agreement has been concluded, with the two banks set to raise the money and I don't think there will be any problems. We anticipate to recoup our entire investment in about 8 to 10 years and turn the complex in Bor around in 3 to 4 years," stated Horia Simu, general manager of Cuprom.
The Romanian company controlled by two former bankers formerly employed by Citibank Romania- Horia Simu and Horia Pitulea, posted 210 million dollars (157 million euros) in turnover and 15 million-dollar profit.
Cuprom owns two facilities in Baia Mare and Zalau, and now intends to expand to Serbia, where it won a tender to buy copper mines of the RTB Bor company. At present, the Serbian company is losing about 45 million dollars (36 million euros) a year.
Cuprom will have to pay 400 million dollars for the assets of RTB Bor and also an investment commitment worth 200 million dollars for the next four years.
Simu and Pitulea along with Ionut Costea, the current chairman of Raiffeisen Banca pentru Locuinte (Raiffeisen Housing Bank) bought the factories in Zalau and Baia Mare a few years ago, which they managed to restructure and make profitable.
At present, Cuprom is attempting to expand. Apart from the business in Serbia, the "copper bankers" are running a consortium that has been in talks over a partnership contract with the Romanian state since November for the mining operations in Moldova Noua and Abrud, which were halted two or three months ago and the employees laid off and offered redundancy packages. Other than Cuprom, the consortium also includes Energo Mineral, a company that spe
