RTC makes €20 mln from sale of three companies

RTC’s President is negotiating the sale of the Best Distribution game distributor with Athens-based CD Media. The transaction is valuated at “several million euros” considering that Best Distribution’s 2007 turnover is estimated at some €6 mln, according to company officials.

 Negotiations are currently ongoing for a two-stage acquisition of the company. CD Media will initially buy a Best Distribution share package of less than 50 percent, and acquire the remaining shares within six months.

Selling the company is part of Radu’s strategy to focus on developing the group’s most profitable companies, such as Diverta, and ProCa, and selling those that have low profit margins and are collateral for RTC’s main business line.

Since the beginning of the year, RTC has sold two businesses: Pay Store and Aqua Regis, for €15.5 mln and €1 mln respectively. A further two businesses, Depozitul de Vinuri and Depozitul de Legume si Fructe, were liquidated, as no buyers were found for them.

The Best Distribution company covers 65 percent of the Romanian game market, which is estimated to be worth €10 mln in 2007, and its main competitor is Ubisoft, with a 10 percent market share. The company posted sales worth €2.5 mln in H1 2007. “Best Distribution’s turnover increased by 35 percent year-on-year, mainly due to general development of the market, expansion of the store network, a higher standard of living in Romania, and the strengthening of the leu against the euro, which led to prices dropping by up to 20 percent on various segments,” Mike Stegaru, Marketing and Acquisition Manager of Best Distribution, told Business Standard.