Sparkling wine producer Zarea SA Bucharest is the apple of discord in a fierce takeover war waged by a natural person owning 10% in the company, by German-held company Karom Drinks SA (producer of the Faber sparkling wine) and by Cocor SA, the owner of the Bucharest-based store bearing the same name.
Mihaela Buzatu, the natural person who holds a 10% stake in Zarea, launched a public takeover offer for 40% in the company in mid-February, which was followed by the counteroffers of the other two competitors, both launched on March 3, 2004, for a 49.9% stake. The Privatisation Authority (APAPS) owns 40% in Zarea SA, whereas the shareholders derived from the mass privatisation programme jointly own another 50%.
Mihaela Buzatu offers 2,110 ROL for one Zarea SA share (14 billion ROL for 40%), whereas Cocor SA is forking out 2,220 ROL/share (18.3 billion ROL for 49.9%), and Karom Drinks is prepared to shell out slightly more money: 2250 ROL per share (18.5 billion ROL for a 49.9% stake).
Zarea SA is listed on Rasdaq market, with the last average trading price (on March 5, 2004) amounting to 3,000 ROL, which puts the company's market capitalisation at 1.5 million dollars. The face value of one Zarea share is 1,000 ROL, with the average price logged in the past 12 trading months standing at 2,071 ROL.
Mihaela Buzatu bought the ten percent last November, under a single transaction on Rasdaq, from Radu Cocos, one of the former shareholders of Romania's leading sparkling wine producer, Astese Production SRL (which makes the Angelli brand). The company was fully taken over at the end of last year under an $11.2 million transaction, by German Henkell&Sohlein Group, Europe's largest sparkling wine producer.
According to wine industry sources, Mihaela Buzatu is tightly connected to Radu Cocos. "I cannot comment on this transaction," Mihaela Buzatu told Ziarul Financiar. Radu Cocos says he sold his 10% stake in Zarea for a profit last year, but claims he does not know Mihaela Buzatu personally.
The three bidders aim at the 40% stake held by the Privatisation Authority, but APAPS seems to have very little if any interest in privatising the company on the capital market, as it has recently announced that it will soon put Zarea SA on sale, using a classic method.
Karom Drinks makes the Faber sparkling wine and is owned by Schloss Wachenheim, the world's largest producer of sparkling wine in terms of number of bottles sold. "The German producer is very keen to expand on the Romanian market and that is why we launched a purchase offer for the stake held by APAPS in Zarea SA," said Emil Popescu, general manager of Karom Drinks. The company was also interested in Angelli, but was outbid by Henkell&Sochlein.
"We have been watching Zarea SA for more than six years and we think that now is the best time to buy. Our offer is aimed at the mass privatisation programme stockholders, but we also sent an offer to APAPS, which, however, does not seem interested," says Aurel Besliu, chairman of the Cocor SA Board.
Zarea SA logged 147bn ROL turnover and net profit of 136bn ROL in 2002, according to data supplied by the Ministry of Finances.
stelian.negrea@zf.ro
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