Investment company Trans Balkan Investments, formerly known as Equest Investments Balkans, announced last year it plans to sell the majority stake in Domo it bought back in 2007.
“There will be several bidders. I will participate in a consortium of investors as I do not have the necessary power to enter the battle on my own,” said Szarvadi
In 2007, Szarvadi and the other shareholders of Domo, sold 75% in the company in a EUR62.5 million deal, added with a EUR12.5 million bonus for financial performance in 2007. The remaining 25% of shares stayed with the founding holders of Domo, including Szarvadi.
Szarvadi has voiced his interest in repurchasing the majority stake in Domo as early as last year
A first step to taking control over the company may be the very rebranding of Technomarket stores into Domo stores, so that all the five Technomarket-branded stores will turn into Domo ones.
The Technomarket brand was brought in Romania by Trans Balkan Investments as the fund bought the majority stake in the Bulgarian-registered company one year ahead of Domo’s acquisition.
Domo is set to open another eight stores by the end of this year, after having opened three in the first five months. Domo is thus speeding up its expansion pace this year against 2010, when the retailer opened eight stores.
Home appliances retail has been one of the hardest hit markets in the past two years, with the 40% plunge of 2009 being followed by another cold shower last year, when the market lost another 15% of its value. However, the first quarter of this year signaled the start of recovery in the industry, with GfK market research firm reporting a 10.7% increase in white goods sales from the same period of last year.
Domo is the second largest retailer on this market after Altex, having posted EUR180 million in sales last year, up from EUR170 million in 2009.