RO investors sell each other troubled gas drilling equipment producer

Romanian entrepreneurs Paul and Lorena Hodis bought a 46% stake in the manufacturer of equipment for the oil and gas industry Armax Gaz Medias (ARAX) from Mircea Simion Vescan.

The transaction took place last week on the Bucharest Stock Exchange, where the Armax Gaz shares are listed.

Vescan got RON 3.6 mln (EUR 0.75 mln) for his stake. Ten years ago, in 2011, his stake was worth over EUR 10 mln.

Mircea Vescan, at that time one of the richest people in Sibiu, was making the headlines at that time after paying EUR 155,000 at a public art auction for a painting by Romanian master Nicolae Grigorescu.

In recent years, however, Armax Gaz has been struggling due to financial problems. The company is currently undergoing a judicial reorganization program after filing for insolvency.

In 2020, Armax Gaz increased its turnover by 53% compared to the previous year, to RON 20.7 mln (EUR 4.25 mln) but recorded a loss of RON 1.1 mln (EUR 225,000).

The ARAX shares almost doubled their price after the deal between Vescan and the Hodis family, and the company's capitalization reached RON 14 mln (EUR 2.9 mln). The two buyers took over the stake through the industrial equipment distribution firm Drilling Equipment Zalau, which they control.

Paul Cristian Hodis is the owner of several companies in Zalau and was a shareholder of the Zalau Municipal Volleyball team.

(Photo: Diana Oros/ Inquam Photos)