Romania’s polymer processing group TeraPlast takes over Moldovan peer Palplast
Source：https://www.romania-insider.com/teraplast-palplast-takeover-january-2024; https://www.profit.ro/
From：Taiwan Trade Center, Bucharest
Update Time：2024/02/16
TeraPlast (BVB: TRP) informed the investors about the signing of the closing certificate in the acquisition of Palplast Moldova (The Moldovan company was controlled before the takeover by former Moldovan prime minister Ion Sturza through his Cyprus-based vehicle Fribourg, which remains a minority shareholder), which operates two production lines for high-density polyethene pipes for water and gas supply networks, following the fulfilment of all preceding conditions. Consequently, TeraPlast holds the majority stake in Palplast, respectively 51%, while the current shareholder, Fribourg Capital, retains 49%.
The total value of the transaction amounts to EUR 1.8 million, with TeraPlast SA injecting EUR 1 million into Palplast’s equity and EUR 0.8 million paid to the existing shareholder, Profit.ro reported.
Palplast Moldova will use the amount obtained to diversify its production capacity and expand its logistics platform.
Through this deal, TeraPlast seeks to capitalise on the municipal water and sewage projects expected in the EU candidate country Moldova over the coming years, TeraPlast president Dorel Goia explained.
The Moldovan company was controlled before the takeover by former Moldovan prime minister Ion Sturza through his Cyprus-based vehicle Fribourg, which remains a minority shareholder.
Palplast operates a factory in Calarasi, 50km from Chisinau. It reported a EUR 2 million turnover and EUR 0.28 million net profit in 2022.
The TeraPlast Group is the largest polymer processor in South-Eastern Europe. The group is composed of the following companies: TeraPlast, TeraGlass, TeraPlast Recycling, TeraBio Pack and Somplast. Since July 2, 2008, TeraPlast SA is listed on the Bucharest Stock Exchange under the symbol TRP. The company's shares are included in the BET reference index of the Bucharest Stock Exchange, in the Small Cap and Global All Cap indices of FTSE Russell, in the MSCI Frontier IMI (Investable Market Index) and in the CECE MidCap and ROTX EUR indices of the Bucharest Stock Exchange in Vienna.
Source: https://www.romania-insider.com/teraplast-palplast-takeover-january-2024; https://www.profit.ro/