Cargus (Romania) considers strategic partnership or floatation

Cargus is considering selling a stake and also floatation.

“We started an audit process three months ago and are now considering whether to sell a stake to either a firm in the same business, or to an investment fund, as well as floatation on the stock market. We are looking at all possibilities, including growth through our own resources. What’s important is retaining our position on the market,” said Augustin Plesea, the company’s manager and one of its two shareholders.

Several companies on the market, including Curiero and TCE Logistica, are planning to sell a stake in 2008 or 2009.

The decision comes as companies attempt to maintain their market share amid rising competition and massive investments.

According to some market sources, Cargus is in talks to sell a stake to Deutsche Post World Net, the company that owns DHL 100 pct, however, the representatives of the two companies deny this information.

Cargus in the first six months of this year generated turnover worth 12.5 million euros from domestic delivery services, up 43 pct in terms of volume. “Another 6m euros were registered by the other companies of the group,” specifies Plesea.

Company representatives expect to derive turnover in excess of 30 million euros this year from domestic delivery services and reach around 40 million euros for the entire group.

Although the company’s turnover is rising, its profit margin is shrinking, and reached 5 pct in the first half of this year, from around 9 pct last year, according to Cargus’ manager.

Under the circumstances, the company’s representatives are mulling over the possibility of a shipping rate increase.

Cargus this year invested around 2m euros in the acquisition of 8 high-tonnage trucks, 100 vans and over 20 3-tonne vehicles, in addition to 40,000 euros in communication systems.