German group SGB-SMIT recently signed an agreement with the main shareholders of Romanian power transformers producer Retrasib Sibiu (BVB ticker: RTRA) to buy a majority stake in the company in a future voluntary takeover bid, Retrasib announced on Thursday, June 26.

Romanian firm Institut Proiect and its main shareholders, Calin and Octavian Buzoianu, who also hold 55.4 percent of Retrasib, agreed to sell their shares in a takeover bid, for a minimum price of EUR 0.0768 per share. This would bring the value of the transaction at EUR 4.25 million and the entire company at EUR 7.7 million, which is 30 percent more than its current market capitalization.

The German group is also negotiating with Romanian firms Trafo Proiect SRL and Scando Trading SRL, which own 25 percent of Retrasib.

The takeover bid is conditioned by certain terms and conditions and won’t be launched if these are not met, Retrasib also mentioned.

The SGB-SMIT Group is one of the most important medium-sized manufacturers of transformers in Europe. Retrasib is currently the main power transformers manufacturers in Romania. The company had a turnover of EUR 9.86 million and a EUR 470,000 net profit in 2013. It has 108 employees.

Andrei Chirileasa, andrei@romania-insider.com