“I’ll keep 200-300 hectares of arable land operated by a different company. I am not leaving agriculture for good,” Victor Chivu told ZF.
The local representatives of the Indian family did not return ZF’s calls for comment on the deal by press time.
The Guptas operate in Romania via Transdanube Industries, an entity, which has previously announced intention to build a steel mill in Oltenita, Calarasi (southern Romania). They are known for the African Industries group worldwide, which has a significant presence in Nigeria.
Negotiations to sell Chivu family’s farms lasted for more than six months and papers were finalized two weeks ago.
“I sold because of health reasons to a certain extent. I will stay in business in agriculture. I have a EUR20 million project for an investment together with a partner in the agricultural sector, as sell as in biogas in Contesti,” Victor Chivu said.
The deal with the Chivus got the Guptas an entry ticket into the Romanian agriculture. Agroholding Contesti and DMX Royal farms use land leased for long term.
The leases for the land of the two farms expire in 22 years. The two own only 3% of the land they farm.
The buyer conducted the deal via Cyprus-based vehicle Ysia Limited, managed by Italian businessman Tommaso Serrano. He is also the chief executive officer of Transdanube Industries.
Information in the “Official Gazette” confirms the deal between the Chivus and the Guptas. The publication says the buyer paid EUR735,000 for about 95% in the two companies.
“The payment has not been made in full yet. The financial details of the deal are confidential,” Chivu said.
The 22-year leases for 2,500 hectares of land amount to about EUR9 million and the sale value of a 2,500-hectare plot of land is EUR10 million, according to ZF calculations.
Most of the land is aggregated, which makes for a lucrative business, Chivu said.
The deal between the Indian investors and the Romanian sellers included the land and machinery the two farms had.
(English version by Loredana Fratila-Cristescu)