Interbrands, the largest FMCG distributor on the market, which took the first steps towards floatation on the Bucharest and London Stock Exchanges, has decided to put the move on hold due to turmoil on the international financial markets.
"When I came to the company in 1999, one of the things we discussed was a strategy to develop the business to a level that would enable us to enter the capital market," says Rand Sherif, CEO of Interbrands Marketing & Distribution Romania.
For the company this seems to be the right time, but the crisis on the world's financial markets, which has affected even the most developed markets, has put the listing on hold indefinitely.
"At the end of 2007, we decided not to go ahead for an obvious reason - the current situation on the capital markets," says Sherif.
In view of the listing, Interbrands has already turned into a joint stock company, drawn up a new organisation chart, and performed a due diligence process.
"We did perform an evaluation of the company, but I couldn't say how much Interbrands is worth at the moment. Values have since changed, just as Romania's country risk has changed," Sherif explains.
The company hired the largest bank in Europe, HSBC, as an adviser throughout the listing process, whilst Linklaters acted as legal adviser.
Last year, the company posted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation) worth 27.4 million RON (8.2 million euros), and 1.05 billion-euro turnover. Interbrands reported financial losses worth 2.7 million RON (0.8 million euros) in 2007.
"We have improved the company's management by creating a board of managers, most of whom are non-executives, as well as a control and audit team, coordinated by Abdo Tohme, who reports directly to the managing board," adds Sherif.
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