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Äike
08-12-2010, 08:35 PM
Editorial: first wave of investors is here (http://balticbusinessnews.com/article/2010/08/04/Editorial_first_wave_of_investors_is_here)

Äripäev writes in today's editorial that the certainty that Estonia will become an eurozone member from January 2011 has attracted to Estonia a new wave of investments.

There have recently been several news about foreign private investors buying holdings in Estonian companies. A few weeks ago came the news that Poland's largest private equity fund Enterprise Investors is pay 7 million euros for 36% of Webmedia, Estonia's largest computer software company that has developed and launched, among others, online banking solutions and E-school, a solution used by almost half of 1.3 million Estonians.

“This partnership could mean that Webmedia becomes the first software company from the Baltics to become public,” said Priit Alamäe, co-founder and chief executive officer of Webmedia that has about 350 staff in five countries and net income of 1.8 million euros on sales of 14.9 million euros last year. Enterprise Investors that has arranged 26 IPOs believes that Webmedia could be ready for listing in five years.

Then, this week it was announced that BaltCap, the largest private equity fund in the Baltics, is going to invest in Estonian construction group TREV-2 in exchange for an 25% holding. The new owner has also hinted at the possibility of taking TREV-2 public.

Since these are difficult times for construction groups on the market that shrank 62% in a year, such investments are a welcome source of capital that help them survive tough times.