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Lynx Property buys 75 per cent of Romania’s Domo Retail

Lynx Property, which is 75 per cent owned by AIM-listed private equity and property fund Equest Investments Balkans, has acquired a 75 per cent stake in Romanian retailer Domo Retail for a

Lynx Property, which is 75 per cent owned by AIM-listed private equity and property fund Equest Investments Balkans, has acquired a 75 per cent stake in Romanian retailer Domo Retail for a total of EUR62.5m.

Domo is a consumer electronics and household appliances retailer that operates 116 retail shops in major cities throughout Romania, with an average size of over 420 square metres. The deal has been funded by EUR30m in cash from Lynx and a EUR35m loan from Raiffeisen Zentralbank Osterreich.

From its own resources, Equest Investments Balkans has provided a shareholder loan facility of up to EUR13.5m to Lynx, partially to finance the Domo Retail acquisition. Lyra Investment, which owns the remaining 25 per cent of Lynx, provided the balance.

Lynx has entered into a shareholders agreement with Domo’s founding shareholders that gives the purchaser the right to acquire the remaining 25 per cent from the founders in the future at a price based on Domo’s financial performance in 2007 and 2008.

‘We are delighted to have completed this important acquisition,’ says Petri Karjalainen, managing partner of Equest Partners, the investment adviser to Equest Investments Balkans. ‘Domo will add to Equest’s strong foothold in the consumer electronics business through our investment in Technomarket.

‘Furthermore, we believe that this acquisition will enable us to achieve considerable operational and purchasing power synergies with Technomarket and that we will be able to contribute significantly to the business’s strong growth.’

Adds Domo chief executive Lorand Szarvadi-Teglas: ‘Partnering with EIB, through Lynx, strengthens our company and ensures we have both the capital and the human resources needed to continue to expand our business.’

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