Ukrainian PE fund sells 22.6% stake in Romanian winemaker Purcari

Cyprus-registered Lorimer Ventures Limited, a financial vehicle of Emerging Europe Growth Fund II managed by Ukrainian private equity firm Horizon Capital, has launched a private placement to sell its 22.7% stake in Romanian-Moldovan wine maker Purcari Wineries (BVB ticker: WINE).

The fund has launched an accelerated book building procedure to sell its shares, Purcari Wineries announced in a note to investors.

The Purcari shares dropped by almost 7% on Wednesday, after the announcement, to RON 21.5, the lowest level in over three months.

However, investors were familiar with Horizon Capital’s intention to sell its stake in the company, as the fund announced in August that it was exploring its options in this regard.

Czech brokerage firm Wood & Company Financial Services will act as global coordinator and joint bookrunner, and Raiffeisen Bank SA and Raiffeisen Centrobank AG will act as joint bookrunner.

Purcari Wineries announced that its revenues increased by 25% in the first half of the year compared to the same period in 2018 to RON 87.8 million (EUR 18.5 mln) while its adjusted EBITDA and adjusted net Income increased by 30% and 35% respectively, to RON 30.1 mln and RON 21.1 mln.

Purcari Wineries is one of the largest wine and brandy groups in the CEE region. The group manages around 1,400 hectares of vineyards and operates four production platforms in Romania and Moldova.

The company’s biggest shareholder is Ambroselt Universal, controlled by Purcari CEO Victor Bostan, with a 25% stake. Horizon Capital also sold a 40% stake in Purcari in the initial public offering (IPO), in February 2018, for EUR 33 mln.

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