"Stock exchange listing is on the cards for Líra és Lant, one of Hungary's largest book distributors, as the group has acquired major local book wholesaler, Sunbooks, which is also a key supplier of hypermarkets. Revenues of Líra és Lant are seen rising to HUF 10 billion in 2008 from HUF 6.4 bn this year, news portal index.hu has reported on Tueday.Líra és Lant Zrt's general meeting approved to purchase of 100% of Sunbooks and its logistics unit, as well as a 70% stake in BMS Kft., a company giving the IT background to Sunbooks. The owner of Sunbooks has at the same time become a co-owner in Líra és Lant. There was also a capital increase, which increased the number of shares by 10%, the parties have announced. Changes have also been made in the Board of Líra és Lant.
Sunbooks, the leading player in the b2b (business to business) Internet book wholesale market, posted net sales of over HUF 3 bn in 2006. Its 500 key clients include hypermarkets and bookstore chains. Sunbooks is the biggest supplier of books, maps and DVDs for Tesco, but it is also a key supplier of Auchan, Cora, Media Markt and Praktiker. Sunbooks is also a major supplier of libraries and has exclusive rights to sell the books of some publishers. It holds a 50% stake of youth literature publisher Passage.
“In the integration process starting in 2008 Sunbooks will maintain for the long term its individual role in supplying hypermarkets and other major buyers, while - as part of the Líra és Lant group - joint procurements, marketing, IT and logistics activities will bring considerable synergies," the companies detailed the advantages of the takeover.
The merger of Líra book wholesale and Sunbooks may create the possibility of stock exchange listing of Líra és Lant group in the medium run.
The operations of Líra és Lant has been focused on the development of the group's retail network for two years. During this period, 17 new Líra bookstores were opened and 8 previously franchise stores got under direct control of the group, which currently runs 45 own stores and 20 franchises. The new bookstores were generally placed in shopping malls.
Líra és Lant group's consolidated net sales amounted to HUF 5.3 bn last year, and the target for 2007 was set to HUF 6.4 bn. Sunbooks hopes to reach revenues of HUF 3.2 bn this year, so their joint sales could be up at around HUF 10 bn in 2008."
Source: Portfolio Online Financial Journal
31.10.2007