Hong Kong’s ADM buys stake in Prista Oil
ADM Capital and the European Bank for Reconstruction and Development (EBRD) have provided EUR48 million ($62 million) of replacement capital for a 30% stake in Bulgaria’s Prista Oil Group.
The Hong Kong-based private equity firm and the EBRD have acquired hedge fund Gramercy Emerging Markets' shareholding in the lubricants and battery maker. The investment represents ADM's first investment in Bulgaria.
As well as the EUR48 million - which consists of equity and convertible instruments - the EBRD provided Prista with a EUR12 million loan.
This financing will enable the group to improve its balance sheet and corporate structure and enhance its operational efficiency. It will also support the expansion of its branded network of service centers into Turkey, Romania, Hungary and the Slovak Republic, the installation of new equipment and the upgrade of the corporate IT system.
"In entering new countries we always seek companies with strong and stable market shares and an unwavering commitment from the company's principal owners," said Anthony Stalker, partner and head of ADM Capital Europe. "We believe that Prista Oil satisfies all these requirements."
Prista Oil Group is active in more than 20 countries, mainly in Central and Eastern Europe, and more than half of its turnover comes from exports.
The EBRD is an LP in ADM's CEECAT Recovery Fund, which invests in Central Asia, Central and Eastern Europe, and Turkey. Founded in 1998 amid the fallout from the Asian financial crisis, ADM has more than 14 years of experience in investing in emerging markets across 12 countries. It employs around 50 people at offices in Hong Kong, Mumbai, Beijing, Istanbul and London.
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