Romania's Paval Holding buys 5% stake in Simtel Team

Romanian engineering and technology company Simtel Team said on Thursday that Romanian investment vehicle Paval Holding has acquired 5% of its shares.

Following the transfer of 5% of share capital to Paval Holding, Simtel's three founders - Iulian Nedea, Sergiu Bazarciuc and Radu Vilau, control 78% interest in the company among themselves, while employees own 2%, Simtel Team said in a press release.

The remaining 15% of the shares in the company is held by 154 individual and professional investors who participated in a private placement last month.

The shares Simtel, which in May raised 13.7 million lei ($3.4 million/ 2.8 million euro) from investors on the Bucharest Stock Exchange, are expected to float on the AeRO market in the coming weeks. Within the private placement, concluded on May 27, a total of 1,055,000 shares representing 15% of the company's share capital, were sold to investors at a price of 13 lei per share.

"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," Simtel Team CEO and co-founder Iulian Nedea said.

The anticipated capitalization of the company ahead of the debut on the AeRO market is 92 million lei, the company said.

Simtel Team, founded in 2010, operates in three business areas: renewable energy, telecommunications, and automation. In 2020, Simtel Team registered a net profit of 4 million lei on turnover of 42 million lei and an EBITDA of 5.8 million lei.

Out of total turnover generated in 2020, 69% was brought in 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 a rising demand for engineering services in the renewable energy sector.

Between 2019 and 2020, the company built over 17 MWp out of a total of 40 MWp constructed in Romania.

Paval Holding is an investment vehicle controlled by Romanian entrepreneurs Dragos and Adrian Paval, founders of DIY retailer Dedeman.

(1 euro=4.9218 lei)

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