The operation, which aims to develop recycling firms Greentech and Greenfiber International (where Romcarbon holds some 32% of stock), as well as Greenweee International (where Romcarbon holds 54.5%), was approved Thursday, according to a notification posted on the Bucharest bourse.
The transaction will be concluded between Romcarbon and Green Group Romania Holdings, part of South Eastern Europe Fund.
In the first phase, Romcarbon will increase the share capital of Cyprus-registered Recyplat to EUR26,000 from EUR16,000, by issuing 10,000 shares with a face value of EUR1. As sole Recyplat shareholder, Romcarbon will join the share capital increase with a contribution in kind, consisting of the shares held in Greentech, Greenfiber and Greenweee, worth a total 20.7 million lei (EUR4.78 million).
Later, Recyplat, sole shareholder in Cyprus-registered Romgreen Universal, will unfold a similar share capital increase, to EUR18,000 from EUR8,000, with the same contribution in kind.
In a second stage, Recyplat will sell 75% of Romgreen Universal to Green Group Romania Holdings for EUR11.7 million.
Recyplat will approve the share capital increase at Romgreen and will participate in the operation with a total EUR3.65 million.
The final steps of the transaction involve Recyplat’s approval that Romgreen vote for the increase of share capital at Greentech, Greenfiber and Greenweee. Romgreen would then join these increases with up to EUR10 million.
“Through this transaction, Romcarbon plans to draw capital to accelerate the development of recycling activities through the investment plans of Greentech, Greenfiber International and Greenweee International,” the notification reads.
Global Finance is an investment company founded in 1991 in Greece.
Romcarbon posted revenue of RON87 million in the first nine months of this year, down 9% from RON95.6 million in the same interval of 2010. However, the company posted a net profit of RON3 million, from a loss of RON0.4 million.
The company’s main shareholder is Taiwanese Living Plastic Industry, with a 32.85% stake. Other shareholders include Unitai International Corporation, with 20.5% and investment fund Eastern Eagle Fund, with 14.2%. (EUR1=RON4.3409)