EBRD supports stock exchange debut of Romanian food producer

• EBRD takes minority stake in Romanian meat processing and ready-meals firm
• Transaction is part of Cris-Tim’s initial public offering on Bucharest Stock Exchange
• EBRD working to deepen capital markets in central and eastern Europe

The European Bank for Reconstruction and Development (EBRD), which supports the development of capital markets in Romania, has taken a minority stake in leading Romanian meat-processing and ready-meals producer, Cris-Tim. The €13.1 million (RON 66.6 million) investment was part of Cris-Tim’s oversubscribed initial public offering (IPO) on the Bucharest Stock Exchange, which closed yesterday and gives the EBRD just over 5 per cent shareholding in the company.

The proceeds of the IPO will be applied towards the company’s investment programme and will support the issuer’s strategy to expand and modernise its production facilities, strengthen its position in the processed meat and ready-meal segments, and pursue selective acquisitions to consolidate its market presence and diversify its product portfolio.

The IPO is expected to have a demonstration effect for other prospective issuers seeking a listing on the Bucharest Stock Exchange, which the EBRD wants to encourage to deepen regional capital markets. Cris-Tim is the first food producer to list on the Bucharest Stock Exchange, thereby broadening investment diversification opportunities on the local capital market and paving the way for other Romanian entrepreneurial companies to follow suit.

Prior to the listing, the EBRD worked with the company to strengthen its corporate governance framework. The EBRD has also worked with the Bucharest Stock Exchange on revising its corporate governance code, bringing it in line with recent regulatory developments, updated global best practices and the priorities of market participants.

As a leading investor in Romania and across central and eastern Europe, the EBRD is also well placed to support plans by the company to expand its business and competitiveness.

Founded in 1992, Cris-Tim Family Holding S.A. is a Romanian company specialising in meat processing, the national leader in both the cold cuts and ready-meals segments.

The EBRD has operated in Romania since 1991. To date it has invested more than €12 billion in 576 projects, mostly in the private sector.