“We are currently in talks with companies in Romania and Bulgaria. We will probably conclude a deal in Bulgaria within the next two months and one in Romania by the end of the year,” Manda told ZF in an interview. The manager has over time invested in businesses such as Banca Romaneasca, Edy Spedition, Domo and Policolor.
The funds managed by Manda are involved in regional businesses such as EELF – a leasing company with operations in Bulgaria, Moldova and Albania, and Iceline Darko, the second-largest ice cream producer in Bulgaria.
Whereas a year ago in an interview to Ziarul Financiar Manda was talking about the economy in optimistic terms, saying he was ready to resume the investment cycle and that he was involved in three takeover negotiations, now the manager used words like “concern” and “prudence” several times.
“Investors don’t respond immediately”
“Unfortunately the optimism I displayed a year ago has turned into concern. I was saying last year that despite the signs of stabilization, there were significant risks to do with 2012 being an election year.”
But he says recent political developments far exceeded his expectations and have already had a serious negative impact, so far at perception level.
“However, genuine perverse effects will inevitably follow at economic level,” Manda also said.
Over time, the funds run by Horia Manda exited businesses such as Banca Romaneasca (in 2003), Ralfi/Estima Finance, Motoractive, Domenia Credit (2006), Domo (2007) and Policolor (2008).
Major investors now have their eyes on newspapers, awaiting analyses of investment banks and Manda says it will be another few weeks until they form a clearer picture as to what is going on in Romania.
“I saw that in the past two weeks there have been two or three articles about Romania in publications such as The Financial Times, The Wall Street Journal and The Economist, whereas before Romania used to feature sporadically, once or twice a year.”
But investors on money markets have already acted “to devalue the Romanian currency and change the trend of Romania’s sovereign bond yields.”
“The exchange rate has a major impact on the activity of many companies. Short-term anticipations have changed. Budgets and calculations will have to be adjusted to the new realities.”
Analyzing the trend of the economy from 2002 to 2008, Manda notes that growth was based on an increase in external crediting, not of productivity, and says Romania will definitely have to come up with a new growth model.
(English version Daniela Stoican)