Equest Investments Balkans Ltd
01 October 2007
For Immediate Release
EQUEST INVESTMENTS BALKANS LIMITED
Completion of acquisition of 75% Stake in Domo Retail S.A. by Lynx Property B.V.
Further to the announcement of 19 July 2007, Equest Investments Balkans Limited
('EIB' or the 'Company'), today announces the completion of the acquisition by
its 75% owned subsidiary, Lynx Property B.V. ('Lynx') of 75% of the shares of
Domo Retail S.A. ('Domo') for a total consideration of €62.5 million. The
consideration has been funded by €30 million in cash from Lynx and a €35 million
loan facility from Raiffeisen Zentralbank Osterreich AG ('RZB'). EIB, from its
own resources, has provided a shareholder loan facility of up to €13.5 million
to Lynx to partially finance the consideration paid by Lynx, and Lyra Investment
Holding N.V., which owns 25% of Lynx, has provided Lynx with the balance of the
Lynx consideration.
Lynx has entered into a shareholders agreement with Domo's founding
shareholders, which includes, inter alia, rights and obligations in certain
circumstances for Lynx to acquire the remaining 25% from Domo's founding
shareholders, with consideration to be based on Domo's financial performance in
2007 and 2008.
Domo is a consumer electronics and household appliances retailer in Romania.
Domo currently operates 116 retail shops located in major cities throughout
Romania, with an average size of over 420 sq m.
Commenting on this acquisition, Petri Karjalainen, Managing Partner of Equest
Partners Limited, EIB's Investment Adviser, said today:
'We are delighted to have completed the strategically important Domo
acquisition. Domo will add to EIB's strong foothold in the consumer electronics
business through our investment in Technomarket. Furthermore, we believe that
this acquisition will enable us to achieve considerable operational and
purchasing power synergies with Technomarket and that we will be able to
contribute significantly to the business' strong growth.'
Mr Lorand Szarvadi-Teglas, the CEO of Domo, added:
'Partnering with EIB, through Lynx, strengthens our company and ensures we have
both the capital and the human resources needed to continue to expand our
business.'
For further information please contact:
Equest Partners Limited + 44 20 7240 7600
Petri Karjalainen
Naomi Kora
Collins Stewart Europe Limited +44 20 7523 8350
Hugh Field
Jonny Sloan
Financial Dynamics + 44 20 7831 3113
Ed Gascoigne-Pees
David Cranmer
This information is provided by RNS
The company news service from the London Stock Exchange
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