Romanian AAC block producer Celco buys 13% stake in listed competitor Prefab

AAC block producer Celco, one of the biggest manufacturers of building materials in Romania, bought a 13% stake in Prefab, one of its top competitors. The seller was the local investment fund SIF Muntenia (SIF4).

The deal was announced on the Bucharest Stock Exchange where Prefab’s shares are trading under the ticker PREH. The value of the transaction was not disclosed.

On March 17, 2022, Prefab’s shares were trading at RON 2.64, up 20% compared to the beginning of this year and 40% compared to one year ago. Its market capitalization is RON 128 mln (EUR 25.8 mln). However, the daily trading volumes are low as the free float is under 4%.

Prefab’s majority shareholder is Romerica International, a company controlled by local investor Marian Petre Milut, who is also Prefab’s president of the board and general manager.

In 2021, Prefab increased its turnover by 12% to RON 99 million (EUR 20 mln) while its net profit went up by 77% to RON 10.8 mln (EUR 2.18 mln). The company proposed the distribution of dividends worth almost RON 7 mln, resulting in a gross dividend per share of 0.144 RON and a gross dividend yield of 5.45% (at the current trading price).

Celco is significantly bigger and more profitable. In 2020, the company recorded a turnover of RON 168 mln and a net profit of RON 48.4 mln, according to the latest public data available. Celco is a family business founded by local entrepreneurs Ion and Niculae Dusu.

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