"Armax Gaz" hits the jackpot, wins a 50 million Euro call for tender

• Chairman Mircea Simion Vescan: "I am getting ready to participate in a call for tender abroad"

• Shares of Armax climbed 18%, a few hours after the announcement

"Armax Gaz" Mediaş (symbol: ARAX), which produces equipment for the natural gas industry won four framework agreements worth 205.35 million lei (approximately 50 million Euros), following a call for tenders issued by "Transgaz". The contracts span a four year period.

Mircea Simion Vescan, the general manager of the company, said the following for BURSA, that the four contracts only account for 15-20% of the company"s annual turnover, and said the company has big plans for entering foreign markets: "We won all the four contracts, which shows we are the best company in South-Eastern Europe. We now have to wait and see when the framework contracts will get signed and how many plants need to be repaired. The company has a far greater potential, however. Even now, I am getting ready to participate in an international call for tenders, as we are interested in expanding our operations to countries which were part of the former Comecon (Council for Mutual Economic Assistance -USRR, Democratic Republic of Germany, Bulgaria, Poland, Czechoslovakia, Hungary and Romania) and the Middle East".

The announcement sparked a rally, causing ARAX stock to climb as much as 18% yesterday, closing at +17.14%, at 0.123 lei/share, on an above average trading volume, equal with 2.21% of the company"s share capital.

Yesterday"s closing price of "Armax Gaz" Mediaş puts the company"s market value at 63.45 million lei. Mircea Simion Vescan owns 39.42% of the company. Other shareholders include, according to last year"s reports, SIF 2 "Moldova" and several mutual funds managed by BT Asset Management, as well as a brokerage firm from Cluj. Shares of ARAX sparked interest of "Aldona" SRL, which according to the insider trading reports bought over 1.29 million shares in the company over the last two months.