Home / BUSINESS / French Lactalis buys Albalact for over RON 340 M

French Lactalis buys Albalact for over RON 340 M

The French group Lactalis, the largest dairy producer in the world, will offer a minimum price of RON 0.5252 per Albalact share. This means about RON 340 million for what was the last great dairy farmer with domestic capital in Romania, local alba24.ro informs.

The price is 38 percent above the one the titles of dairy producer have achieved in January 28, the day in which the intention of taking over was announced on stock market. Albalact shares had a price of RON 0.4940 per title at the closing trading session on Wednesday.

The most important Albalact shareholder is its founder, businessman Raul Ciurtin, who together with his family, indirectly holds 42.53 percent of company stake through Crisware Holdings and Croniar Holdings in Cyprus. For this package, Ciurtin will receive about RON 146 million in cash.

Lactalis will appoint a new board of directors at Albalact, following the current board’s resignation, but announced that has no plans to change the management too. Also, the French dairy producer does not intend to make layoffs nor to give up any of Albalact production capacities.

Regarding its business plans, giant Lactalis wants to strongly enter cheese market, a segment that dominates it in Europe. The stake is winning market share from competitors who import through massive investments in the production units from Moldova area.

The Albalact group of companies closed 2015 with a net profit of about RON 12.63 million, significantly higher than the net income recorded in 2014, but with losses of RON 146 million, Lactalis group assuming their payment.

About Anca Bernovici