28 May 2010 18:25 [Source: ICIS news]
PRAGUE (ICIS news)--Rompetrol Rafinare is set to issue a share capital increase worth New Lei (RON) 450m (€108.4m, $133.9m) to repay a convertible bonds debt that the Romanian state could otherwise turn into a majority holding in the group, an investment bank said on Friday.
The capital raised would be used to repay part of the €570m of convertible bonds held by the state, which if fully converted into company shares would give the government a 50.8% stake in the company, added Raiffeisen Capital & Investment.
Rompetrol Rafinare, which includes the Rompetrol Petrochemicals unit, confirmed it was scheduling a board vote to approve the increase in share capital before the convertible bonds mature in September.
Assuming the state got only RON 450m and the remaining bonds were converted into shares, the state would end up with 45.5% of the statutory capital of Rompetrol Rafinare, said Raiffeisen Capital & Investment.
Rompetrol Rafinare, which is based in Navodari, in eastern Romania, was part of Rompetrol Group, which was fully owned by Kazakhstan's KazMunaiGaz (KMG). The petrochemical unit included a 60,000 tonnes/year high density polyethylene (HDPE) installation, which should be expanded to 100,000 tonnes/year by March 2011.
(€1 = RON 4.15, $1 = RON 3.36)
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