Bulgaria's Yuri Gagarin drops EUR6m deal to buy Hungarian firm.
24 August 2012 a[euro]" Bulgarian cigarette filters and cardboard packages producer Yuri Gagarin Plc (BUL:4PX) announced on Friday that its board of directors had decided to terminate its EUR6m (USD7.5m) deal to take over Filstyle-Hungary Kft.
The Plovdiv-based firm said it had chosen to end the deal as certain changes in the business environment had forced it to reconsider its investment policy and to come up with a strategy that enables the stable development of the business.
Now that the transaction has been abandoned, Yuri Gagarin will need to repay the EUR6m loan it borrowed from Bulgariaa[euro](tm)s First Investment Bank, also known as FIBank.
The deal was unveiled in May 2012. Through it, Yuri Gagarin wanted to extend its activities and to transfer a portion of the filters production to a new base. When announcing the transaction, the Bulgarian company noted that Filstyle-Hungary had a suitable location for this purpose.
Yuri Gagarin, which was set up in 1964, operates as a manufacturer of cardboard and paper printed packages, cigarette filters and spare parts. Its shares have been trading on the Bulgarian stock exchange since August 1998.Country: HungarySector: Food/Beverages/Tobacco, Paper/Packaging/Office SuppliesTarget: Filstyle-Hungary KftBuyer: Yuri Gagarin PlcDeal size in USD: 7.5mType: Corporate acquisitionFinancing: DebtStatus: Terminated
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