The value of the deal is RON14.4 million and includes both the purchase price of shares and the contribution to the share capital increase. The contracts were concluded on July 13, 2022.
The process will be carried out in two stages as follows: the first stage entails the acquisition of shares and the second stage entails the increase in the share capital of RCTI Company by IMPACT subscribing the newly issued shares.
Confidas.ro data shows the majority stake was held by Radu Mihail Totia and the remaining 49% of the share capital is owned by Emil Victor Tudor.
The completion of the transaction is pending approval by Romania’s Competition Council.
RCTI Company is an important player on the Romanian construction market and had a turnover of nearly RON95.3 million (EUR19.3 million) in 2021, up 87% on the year, and a profit of over RON3 million (EUR628,000), almost double from 2020, in line with Confidas.ro data.
Currently, IMPACT Developer & Contractor and RCTI Company have ongoing general undertaking contracts wort over EUR50 million for the construction of buildings in the Greenfield Baneasa compound located in northern Bucharest.
IMPACT Developer & Contractor is one of the largest Romanian real estate developers, with a market presence of over 30 years. The company has a market value of RON1 billion and is 58.82% held by Gheorghe Iaciu and 15.17% by Andrici Adrian. IMP shares have lost 13.14% since the start of 2022, amid deals worth RON27.5 million, in line with stock market data.
IMPACT Developer posted property sales revenues worth RON37 million in the first quarter of 2022, down 5% on the year, and a net profit of RON6 million, from RON1.3 million losses in the first quarter of 2021. Its Operating expenses rose by 20% to RON8.7 million, mainly generated by team consolidation. EBITDA doubled to RON8.4 million and the EBITDA margin climbed to 23%, from 11% in the first quarter of 2021, in line with data from the company’s quarterly financial report.