Promateris, a Romanian industrial group and the leader in the CEE region in the production of compostable and biodegradable packaging, begins the process of division of the company. The division aims to transfer the assets that are unrelated to the core activity to a new entity, Obor Development S.A.. The management estimates the division process to finalize by the end of the year.
“We are happy to announce the beginning of the division process of the company by removing, in the interest of shareholders, the non-core assets from our key business. Promateris will now focus only on the sector in which we aim to become a European leader, namely compostable packaging. The division will help us strengthen our brand image and position in the markets. We are actively seeking development opportunities, and once we finalize the division process, we will attentively look at the available options to finance the next stage of the company’s development,” stated Tudor Georgescu, CEO at Promateris.
The management estimates investments of 15 million euros in the next five years in diversifying the activity and product portfolio by introducing new business lines related to the principles of the Green Pact launched by the European Union.
Promateris was founded in 1957 in Bucharest, and for more than half a century, it specialized in chemical engineering and manufacturing of plastics materials. In 2018, the company decided to transition to more environmentally friendly alternatives and acquired the first equipment to produce compostable packaging. Between 2018 and 2021, the company invested over 10 million euros in the development of the production line of compostable packaging. Today, Promateris is the leader in the CEE region in the production of renewable, compostable and recyclable packaging.
Promateris has invested for several years in various companies listed on the Bucharest Stock Exchange and in 2020 was holding a significant stake in another company, Professional Imo Partners S.A., which the principal asset is Veranda Mall. However, these financial assets were never related to the company’s core activity, representing an efficient capitalization of the company’s cash reserves, and the two lines of activity had different development strategies.
Following the division, Promateris will continue its activity as a manufacturer of biodegradable packaging. The company will remain listed on the Main Market of the Bucharest Stock Exchange and intend to maintain the same shareholding structure. The new company, Obor Development S.A., will have the same shareholding as Promateris, as long as shareholders do not decide to use their right of withdrawal as a result of the division. Obor Development will be a private company, not listed on a stock exchange.
The division was approved in principle by the Extraordinary General Meeting of Shareholders of Promateris on February 4th, 2021, and the division project has been approved by the Board of Directors of Promateris on June 28th, 2021 and published in the Official Gazette and on the company’s website on 2nd of July 2021. The company expects that the division project will be finalized by the end of the year.