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Romania's Rulmenti Barlad borrows €11.5 mln to expand to Hungary, Germany

Shareholders in bearing manufacturer Rulmenti SA Barlad have decided to contract two loans totaling €11.5 million ($15.3 million), as the company plans to make investments abroad, according to a report to the Bucharest Stock Exchange.

The first loan will amount to €3.5 million ($4.65 million) and the company will use this amount to acquire 49% in Hungaria's New MGM Company. The loan, which will be granted by Banca Comerciala Romana, will be guaranteed by the shares bought in the Hungarian company and with Rulmenti Barlad's fixed assets. The second loan, worth €8 million ($10.64 million), will be necessary for the acquisition of a 40%-60% stake in German company Kugel und Rollenlagerwerk Leipyug. Shareholders have also approved a contribution to the share capital increase of Turkey's Anadolu Rulman Imalat San Ve Ticaret AS. The valueof the investment amounts to 1.062 million Turkish liras (1.92 million lei, ($78,770).

Rulmenti Barlad has a share capital of 100.28 million lei ($4.1 million). The company's shares are traded in the 'unlisted' category of the Bucharest Stock Exchange. Last year, Rulmenti Barlad reported a net profit of 19,23 million lei, of which 3.48 million lei will be paid out as dividends, while the remaining 15.3 million lei ($788,900) will be used as self-financing. (