Vienna, November 8, 2011. Raiffeisen Investment AG (RIAG) posts a favourable result for the first three quarters 2011, and is confident to acquire some additional major projects until year end. RIAG focuses on deals in its three core markets Turkey, Russia and Poland, all of which show continuously favourably economic growth rates- primarily in the consumer goods, energy and industrial segments. “A strong first half year 2011 suggested that the positive trend would continue, but since summer the spirits on the M&A markets have dampened. Thanks to our well - filled pipeline due to project acquisitions of the last year, we managed to operate successfully in the past months”, states Gerhard Grund, Chief Executive Officer of Raiffeisen Investment AG.
In the first three quarters 2011 RIAG executed 13 projects with a total deal volume of roughly EUR 2.5 bn, and two projects with a deal volume of roughly EUR 1 bn are near completion. Recently, RIAG closed six mandates in the CEE region and in Turkey and underscores its position as the top M&A advisor on the Turkish market. RIAG was engaged both the takeover of the Turkish pharmaceutical company Dr. F. Frik Ilac A.S., which came up to a transaction volume of EUR 90.1 mn, and in the sales process of the leading Turkish pharmaceutical company BirgiMefar Group. Moreover, sales contracts between companies in the energy sector were signed, which, due to the high quality of the deals, are anticipated to be executed in the foreseeable future.
Highlights in the German speaking countries
In the German speaking countries Raiffeisen Investment AG advised BAWAG P.S.K. in the sales process of the Stiefelkönig chain of shoe stores to Leder & Schuh International AG. The transaction was successfully closed on September 12, 2011. In mid-February part of DELKA was sold to Salamander Austria. Moreover, a project with the German steel producer Wuppermann AG was executed by RIAG in Austria and Poland, with Wuppermann acquiring 100% of Alpos Poland, a local steel pipe producer.
RIAG scores with sector expertise and local know how
RIAG is currently working on about 70 mandates in its core markets Russia, Turkey and Poland. The consumer goods team and the local team of RIAG in Russia have been mandated by Fresenius, a global health company which offers products and services for dialysis, to find investments targets in Russia. In addition, the consumer goods team together with the local Ukrainian team of RIAG were mandated on the buyer’s side by Nutrinveste, one of the major food companies on the Iberian Peninsula.
The telecom media technologies team of RIAG, jointly with the local team in Poland and its partner Lazard, acted as advisor to Netia, the largest alternative provider of landline telecommunications services in Poland in the takeover of Telefonia Dialog. Telefonia Dialog was owned by KGHM Polska Miedz S.A, a Polish mining company headquartered in Lubin. The sales contracts were signed at the end of September 2011, the closing is anticipated for the forthcoming months. “In this case the close cooperation within the RBI Group played a significant role, as Raiffeisen Bank International and Raiffeisen Bank Poland provided the financing for this transaction” says Gerhard Grund.
The projects make clear that our strategy to link up profound local know how with comprehensive sector expertise against the backdrop of RBI’s financing capabilities finds great approval on the markets. “RIAG is currently negotiating about 60 projects pursuing its cross-border and cross-sectoral approach, which enables it to offer its customers top advisory services“, states Wolfgang Putschek, member of the Executive Board of Raiffeisen Investment AG.