A group of Israeli businessmen led by Fredi Robinson has completed the acquisition of Romanian bank Dacia Felix for $60 million. The bank has 25 branches, and the Robinson group says this is the biggest Israeli investment in Romania to date. As far as is known, the group also includes Moshe Boblil and Nissan Khakshouri, Robinson’s partners in the Loutraki casino.
Dacia Felix, set up in 1991, was the first private bank established after the Ceausescu regime’s fall. The bank accumulated $400 million of debts and bad loans to large business customers, and was put into receivership by Romania’s central bank.
Dacia Felix’s debt reached $80 million before the acquisition, but the Israeli group bought it debt-free. The Romanian government is planning to use the proceeds of the deal to cover the bank’s debt. The Robinson group changed the bank’s name to Eurombank.
The purchase of the bank started in October 1998, when a 48% stake was bought. In March 2000, the group increased its holding to 70%. Following today’s deal, the Robinson group owns 98% of the bank. The balance is held by BNS, Romania’s largest trade union, which has a million members.
The bank offers all banking services available in Romania, including private deposit accounts, business accounts, short and long-term private credit, financial coverage, short and long-term business credit, mortgages, and investment services (issues, bonds, promissory notes, valuations, etc.).
The bank also has non-financial assets, including real estate, industrial plants, an insurance company, and a communications company (including a television station with nationwide broadcasts).
Robinson says that the acquisition of the bank is a business opportunity with potential and a financial platform, especially in view of Romania’s openness to the West and planned Israeli and foreign investments in this Eastern European country.
Published by Israel's Business Arena on 1 August, 2001