Slovenian company KD looking to sell its Romanian brokerage division

• Silviu Enache, general manager of KD Capital Management: "We are currently negotiating with a Romanian legal entity on the takeover"

Slovenians of KD Capital Group have been negotiating for several weeks the sale of their Romanian brokerage, KD Capital Management, after they announced at the end of last year that they are looking to downsize their operations.

"The majority shareholder of KD Capital Management intends to sell its Romanian brokerage division", Silviu Enache, the manager of the brokerage firm confirmed for BURSA. According to him, an investor actively operating on the Romanian market was one of the buyers interested in the purchase of the brokerage division, but the deal did not come through. According to market sources, a Romanian consulting firm is currently negotiating the sale of the Romanian brokerage firm of KD Capital Group.

Silviu Enache added: "There are currently talks with a Romanian legal entity, which could lead to a successful transaction in the next few weeks. The intention to leave the Romanian brokerage market comes after KD Group announcing its intention to focus on certain operations such as banking, insurance and management of mutual funds. A consequence of this strategic move will be the exit of KD from the brokerage market in Bulgaria".

Slovenians of KD launched their Romanian brokerage division at the end of 2005, according to their website. This year, they have also announced their intention to leave the domestic insurance market, saying that they need to target market with greater potential.

The drops of the equity market over the course of the last two years have significantly affected the operations of most brokerage firms, as most of them needed the help of their shareholders to weather the crisis. In some cases, significant shareholders chose to sell their stakes they held in various brokerage firms, such as Morgan Stanley which, in March 2009, sold its 51% stake in HTI Valori Mobiliare to Daniel Ţepeş.

At the end of 2009, investment fund RAEF sold its 68% stake in "Intercapital Invest" to three of its managers.

"Broker" Cluj, another brokerage firm that had one of its toughest years since its inception in 2009, successfully attracted SIF "Muntenia" as a shareholder, and the managers of Broker said it plans to attract powerful shareholders.