Paval Holding, the investment vehicle controlled by Dragoş and Adrian Pavăl, founders of DIY retailer Dedeman, bought a 5% stake in a Romanian engineering and technology company Simtel Team. The shares of the company, which in May 2021 raised 13.7 million lei from Bucharest Stock Exchange investors, are expected to float on the AeRO market in the coming weeks.
“We are overjoyed that Paval Holding joined our company as a significant shareholder ahead of Simtel listing on the AeRO market and we thank Dragoș and Adrian Pavăl for their trust. In recent years we have installed photovoltaic panels on the rooftops of over 30 Dedeman stores throughout Romania. The transaction is positive news for all our shareholders, as the entry of one of the most important clients in our shareholding structure is a clear sign that Simtel Team is a sustainable business with good growth potential,” stated Iulian Nedea, CEO and co-founder of Simtel Team.
Within the private placement, concluded on May 27, 2021, a total of 1,055,000 shares, respectively 15% of the company’s share capital, were sold to investors at a price of 13 lei per share. Following the closing of the private placement for SMTL shares, Paval Holding SRL has purchased a total of 352.750 already existing shares in Simtel Team from the three founders – Iulian Nedea, Sergiu Bazarciuc and Radu Vilau, at a price equal to that from private placement. The anticipated capitalization of the company ahead of the debut on the AeRO market is 92 million lei.
Following the transfer of 5% of share capital to Paval Holding, Iulian Nedea, Sergiu Bazarciuc and Radu Vilau jointly own a 78% stake in the company Simtel employees own 2%. The remaining 15% of shares in the company is held by 154 individual and professional investors who participated in the private placement in May 2021.
BT Capital Partners, the investment banking and capital market division of Banca Transilvania, assisted Simtel Team in closing the transaction with Paval Holding, and Nestor Nestor Diculescu Kingston Petersen (NNDKP) assisted the company in the legal aspects of the transaction.
“We are thrilled to have facilitated the transaction between Simtel Team and Paval Holding. It was a challenge and we believe the transaction represents a premiere in terms of execution time, being implemented in less than two weeks from the manifestation of interest by the buyer. The entry of a seasoned investor in the caliber of Paval Holding confirms the significant growth potential that Simtel has. Furthermore, we are confident that this transaction is a clear signal to local investors to pay even closer attention to the entrepreneurial companies that choose to begin their capital markets journey,” said Daniela Secara, CEO of BT Capital Partners.
Simtel Team was founded in 2010 by three graduates of the Faculty of Electronics and Telecommunications – Iulian Nedea, Sergiu Bazarciuc and Radu Vilău. The company operates in three business areas: renewable energy, telecommunications, and automation, and for each of these business lines, it delivers projects both in Romania and abroad. The main services provided by Simtel per line of business are turnkey construction and maintenance for photovoltaic parks, turnkey services for the construction of mobile communications networks for telecommunications operators, and automation of industrial processes through automated production lines, electric drives and industrial robots.
In 2020, Simtel Team registered a turnover of 42 million lei, EBITDA of 5.8 million lei and net profit of 4 million lei. Out of total turnover generated in 2020, 69% was brought by engineering in the green energy sector, 28% by engineering in telecommunications projects and 2% by industrial automation engineering. The compound annual growth rate of Simtel Team’s turnover over the last three years was 73%, driven primarily by the growing demand for engineering services in the renewable energy sector. Simtel is a leader in Romania in the construction of photovoltaic power plants. Between 2019 and 2020, the company built over 17 MWp out of a total of 40 MWp constructed in Romania.