Using Trade Registry data, ZF has compiled a ranking of the 50 largest companies (by 2011 revenue), which have at least one Cyprus-based shareholder. At least ten of the 50 companies were started by a Romanian entrepreneur who preferred to set up a company in Cyprus to manage the Romanian business.
“We only went there for tax efficiency reasons and are not affected in any way. I watch the latest developments in Cyprus and I think the decision to tax bank deposits is a huge mistake because it generates distrust even among investors who might think of registering companies there,” says Radu Timis, founder of cold cuts business Cristim.
The Cristim business (production and distribution) is controlled by a Cyprus-based entity, Rangelow Limited.
“This is a good time for the Romanian government to finally introduce a holding company law that would bring Romanian entrepreneurs back home,” Radu Timis feels.
The largest 50 companies in Romania with at least one Cyprus-based shareholder posted EUR6.8 billion revenue together in 2011, according to Trade Registry data.
Companies with Cyprus-based shareholders vary in size and type of business and the largest of them are Metro Cash&Carry (retail), UniCredit Tiriac Bank (banking), Romtelecom (telecommunications), Libra Internet Bank (banking), Oscar Downstream (oil), Allianz-Tiriac Asigurari (insurance) and Interbrands (consumer goods wholesaler).
Although they have holding companies in the country that is now debating a tax on bank deposits to save itself from bankruptcy, businesspeople say their businesses will not be affected if the Parliament in Cyprus votes to enact the deposit tax.
“The holding company owning Interbrands is registered in Cyprus but we are not affected by the situation there (…), says Rand Sherif, chief executive officer or Interbrands, the leading fast moving consumer goods wholesaler in Romania with more than EUR100 million sales in 2011. Interbrands’ Cyprus-based shareholder is Holson Holding.
“The developments in Cyprus have no impact on our company. I don’t have any deposits in Cyprus,” said Mihai Miron, owner of Ropharma, a EUR91 million pharmaceutical business. The company’s Cyprus-based shareholders are Rimia Investments Limited (20.23%) and ADD Pharmaceuticals Limited (17.53%).
More than 20 of the companies in the ranking are almost fully held (99% to 100%) by Cyprus entities, and the biggest of them are Interbrands, Cefin and Frigoglass.
Ductil, Metro, Tiriac Auto, Medlife and Duma Gas Transport are 10% to 50% held by Cyprus shareholders, while Top Brands Distribution, Agrisol International, Upground Estates, Romtelecom and Stirom are 50% to 90% held.
(English version by Loredana Fratila-Cristescu)