Romania’s TeraPlast (BVB: TRP) announced it took over a 51% stake in Moldovan peer Palplast, which operates two production lines for high-density polyethylene pipes for water and gas supply networks.

By this deal, TeraPlast seeks to capitalise on the municipal water and sewage projects expected in the EU candidate country Moldova over the coming years, TeraPlast president Dorel Goia explained.

The Moldovan company was controlled before the takeover by former Moldovan prime minister Ion Sturza through his Cyprus-based vehicle Fribourg, which remains a minority shareholder.

The parties have agreed upon a transaction value of EUR 1.8 million, consisting of EUR 1 million injected by TeraPlast into the equity of Palplast Moldova, and EUR 0.8 million to be paid to the existing shareholder. Thus, the shareholding structure will be comprised of TeraPlast, holding a 51% stake, and Fribourg, holding 49%.

The amount of EUR 1 million will be used by Palplast Moldova to diversify its production capacity and expand the existing logistics platform.

Plaplast operates a factory in Calarasi, 50km from Chisinau. It reported a EUR 2 million turnover and EUR 0.28 million net profit in 2022. 

iulian@romania-insider.com

(Photo source: Facebook/TeraPlast)