Investors unhappy at new ministers’ Oltchim privatisation delay

08 May 2012 17:26  [Source: ICIS news]

LONDON (ICIS)--Investors are unhappy with the announcement that the completion of the privatisation of Romanian chemical company Oltchim has been put back five months to the end of September by the incoming new government, a source at one of the bidders for the firm said on Tuesday.

Economy minister-designate Daniel Chitoiu said the postponement was necessary because the new administration would need time to properly take over the privatisation process.

However, the source said he did not think the length of the delay was reasonable “as the privatisation was already ongoing and the company’s situation is tragic”.

On Monday, Oltchim - which is suffering restricted production because of a shortage of working capital and feedstock - reported a net loss of New Lei 82.8m ($24.6m, €18.8m) for the first quarter of 2012, compared with a net loss of New Lei 2.64m in the same period last year, with sales having sunk 45% year on year.

Four companies have submitted non-binding offers for the Romanian state’s controlling 54.8% stake in Oltchim.

The firms are Germany’s PCC, which already owns 18% of Oltchim; Russian infrastructure, energy production, investment company and Gazprom subsidiary TISE (Technologies Investments Services Energy); and Romania’s AISA Invest and Pegamont SA.

Oltchim’s main products are polyvinyl chloride (PVC), polyols, dioctyl phthalate (DOP) and caustic soda.

($1 = New Lei 3.37, €1 = New Lei 4.40)

By: Will Conroy
+44 20 8652 3214

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