Ukrainian private equity fund sells 22.7% stake in RO-Moldovan winemaker at a discount

Lorimer Ventures, the second largest shareholder of Romanian-Moldovan wine maker Purcari Wineries, sold its remaining 22.6% stake in the company for RON 91 million (nearly EUR 20 mln).

Lorimer is an investment vehicle wholly owned by Emerging Europe Growth Fund II (EEGF II), managed by Ukrainian private equity fund Horizon Capital.

The sale price per share was RON 20, 7% lower than the closing price on the Bucharest Stock Exchange on October 2, and 14% under the price at which the Purcari shares were trading on October 1, before Lorimer launched its private placement.

However, the price was slightly higher than the one at which the company sold a 40% stake in Purcari Wineries in the initial public offering (IPO), at the beginning of 2018, which was RON 19 per share, a transaction which brought Lorimer Ventures another EUR 33 million.

“We are pleased with the overall returns delivered to EEGF II investors, which were only possible because of the vision and leadership of (Purcari CEO - e.n.) Victor Bostan and the extraordinary team at Purcari,” said Vasile Tofan, Chairman of Purcari Wineries and a Partner at Horizon Capital.

Lorimer Ventures liquidated its 22.6% stake through an accelerated book building managed by Wood & Company and Raiffeisen.

Law firm RTPR Allen & Overy advised Wood and Raiffeisen on this transaction.

The buyers in this transaction have not been made public yet.

(Photo courtesy of the company)