Shareholders of Concefa to discuss the merger with Bravcof Braşov in September

Shareholders of Concefa Sibiu will discuss on September 7 the takeover of Bravcof SA Braşov.

Concefa holds 90% of the Bra ov-based company. The two companies were valued at 147.5 million lei last year (approximately EUR 35.3 million). Concefa Sibiu last year paid 28 million lei (EUR 7.6 million) to buy the majority stake of the Bra ov-based company, which was valued at EUR 12.6 based on the net assets valuation method. Horaţiu Cercel, owner of Concefa Sibiu, claims that part of the assets of Bravcof will be sold after the merger.

Following the merger, the other shareholders of Bravcof Braşov will become shareholders of Concefa Sibiu through a capital increase of 0.83 million lei. Two months ago, Cercel said that business of Concefa shrank 50% YOY in the first quarter. Still, the businessman said that he remains optimistic, because his company is currently negotiating a 3-year long contract worth half of last year"s turnover.

"Concefa" Sibiu last year invested EUR 8 million in equipment and EUR 6.7 million in land purchases. This caused the value of loans taken out by the company to increase to 32.2 million Euros. At the end of last year, the company laid off half of its employees, which it then rehired with lower wages. The turnover of the Sibiu-based company increased 90% last year, over 2007, to EUR 33.7 million, whereas the company"s net profit shrank almost 30%, to EUR 0.8 million.

Construction company "Concefa" Sibiu last year invested EUR 8 million in equipment and EUR 6.7 million in land purchases.