Broadhurst to shut down Romanian electric equipment producer Electroaparataj

Shareholders of Romanian electric equipment producer Electroaparataj will decide on June 10 if they liquidate the company.

The company's management informed investors on the Bucharest Stock Exchange, where its shares are listed, that the factory is in danger of closing down its activity. They explained that the employees' decision to go on strike for higher wages worsened the company's situation, which was already a difficult one due to the higher costs and limited room for increasing prices, local Profit.ro reported.

The company, which exports 90% of its production, recorded losses in the last two years. Investment fund Boradhurst owns 55% of the company's shares. The fund has made a significant profit from its investment in Electroaparataj, a company it bought in the early 2000s, for a few million dollars.

In 2007, Broadhurst sold the land of the former Electroaparataj factory (7 hectares close to National Arena in Bucharest) for some EUR 60 million - nine time the market capitalization of the company according to Ziarul Financiar reporting at that time. One of Bucharest's biggest shopping centers, Mega Mall, was built on that land.

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