Romanian DIY retailer Dedeman reaches 5% stake in energy supplier

Romanian DIY retailer Dedeman has bought an additional stake in the energy supplier and distributor Electrica, reaching a stake of 5.76% in the company, according to a report sent to the Bucharest Stock Exchange. Before this transaction, Dedeman held a stake of 4.83% in Electrica. Electrica is one of the most valuable companies on the Bucharest Stock Exchange, with a market capitalization of RON 4.4 billion (EUR 958 million). Dedeman’s stake is thus valued at some EUR 55 million. Last month, the retailer also bought new shares in the state-owned energy carrier Transelectrica, reaching a stake of 5.56%. Transelectrica has a capitalization of RON 1.93 billion (EUR 419 million) and Dedeman’s stake is currently worth over EUR 23 million. The company, which is controlled by Romanian entrepreneurs Dragos and Adrian Paval, thus has over EUR 78 million invested in the two companies. Dedeman is the leader in the local DIY market with a turnover of EUR 1.16 billion, in 2016. Its turnover increased by 20% compared to 2015. The company’s net profit exceeded EUR 158 million last year, up 26% over 2015. Dedeman wanted to buy three office buildings within the AFI Park project earlier this year, but the transaction didn’t go on. editor@romania-insider.com