The market value of the construction supplies manufacturer Prefab Bucuresti controlled by Marian Petre Milut has increased by 3.5 times, to almost 80 million euros. In the last week alone, Prefab's capitalisation has increased by around 27 million euros, considering the share price increased by around 50% on the RASDAQ.
Prefab Bucuresti is 75% held by Romerica International SRL, where Milut owns 80%. The other partner in the Romerica International venture is Andrei Stieber, a Romanian-born doctor from Atlanta, who owns the remaining 20%.
Marian Petre Milut is one of the richest shareholders of companies on the RASDAQ, with the value of the stake he indirectly owns in Prefab revolving around 48 million euros.
Other than Romerica International, Milut also controls Romerica Computers and Romerica Environmental, V.P. Tarcomi consultancy and second league Prefab Modelu football team. He also owns a radio station and a local newspaper in Calarasi.
Milut (51) entered the limelight when he ran for President in 2004 for Popular Action (AP), the party founded by former President Emil Constantinescu. He then enrolled in the PNTCD (National Christian Democrat Peasant Party), where he was first a vice president and was then elected as party leader at the beginning of this year.
Milut is the first PNTCD leader who differs from his predecessors, Maniu, Mihalache and Coposu, all of whom were seen as austere individuals.
He graduated from the Faculty of Automation and Computer Science in Craiova and worked for IIRUC between 1983 and 1993, where he implemented the introduction of the national computer equipment servicing system. From 1991 through to 1993, Milut was general manager of Metar International, a Romanian-American joint venture that managed the implementation of IT at the Romanian Treasury.
In 1993, he established Romerica International, through which he acquired Prefab in 1998 during Emil Constantinescu's term in office. After 2000, PSD (Social Democrat Party) MPs challenged the privatisation of Prefab, and piled on pressure to have the move cancelled so that the company could be turned over to its employees.
Prefab Bucuresti is one of the most important autoclaved cellular concrete (ACC) manufacturers in Romania. In 2006, the company posted turnover worth 91 million RON (26 million euro), 23% higher than in 2005. Net profit fell by 25% to 7.15 million RON (2 million euros).
Prefab estimates 125 million RON (37.3 million euros) in turnover this year, 37% higher than last year, and gross profit almost double that of last year, worth15.5 million RON (4.6 million euros).
The company plans to make investments of over 13 million RON (3.9 million euros), which will be partly self-funded and partly paid for with cash from other sources.
Prefab Bucuresti intends to release a share issue whereby it seeks to raise 8.9 million RON (2.7 million euros) from shareholders.
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