Finnish investment fund KJK Balkan Holding reportedly carried out a private placement to sell part of its stake in the construction materials manufacturer TeraPlast Bistrita.

A total of 150 million Teraplast shares (8.6% of the company) changed hands on the Bucharest Stock Exchange's public offers section (POF) at RON 0.38, 11% under the Wednesday closing price. The total value of the transfers was RON 57 million (EUR 11.7 mln).

The accelerated bookbuild was reportedly managed by local brokerage firm Swiss Capital, according to sources quoted by Ziarul Financiar. The buyers include pension funds, investment funds, and other institutional investors.

KJK held over 175 million shares, or 10% of the company, before this transaction. It's possible that the fund also sold shares on the regular market, where the volume of transactions with TeraPlast share was also about ten times higher than on a usual day (34 million shares).

The price on the regular market dropped by 6% to RON 0.402. Even so, TeraPlast remains one of the most profitable investments on the Bucharest Stock Exchange this year, with an 85% year-to-date increase.

This is the second private placement with TeraPlast shares this year after Hungary's Marley Magyarország sold its entire stake (7.9%) for RON 29.7 mln this summer.

TeraPlast's market capitalization as of November 12 is RON 700 mln (EUR 144 mln). The company's main shareholder is local investor Dorel Goia, who holds a 46.8% stake.

andrei@romania-insider.com

(Photo source: Facebook/Teraplast Group)