Romania to sell Oltchim majority stake in 14 September auction

13 August 2012 11:25  [Source: ICIS news]

BUCHAREST (ICIS)--Romania's economy ministry plans to sell a majority stake in chemical producer Oltchim in an auction on 14 September, it said on Monday.

An indicative price of New Lei 1.147bn (€253.2m) has been set by the ministry for the 54.8% stake.

Oltchim will first increase its share capital with New Lei as a result of a debt-to-equity swap for the company’s debt to state privatisation agency AVAS. The newly issued shares will then be handed over to the economy ministry and finally all the shares are to be sold through negotiation or open outcry auction.

Oltchim’s debt to AVAS is around New Lei 1.128bn, while the shareholders of the company are expected to approve the capital increase on 10 September, according to the company’s management.

In recent months, the Romanian government has been pushing forward with a privatisation timetable for the disposal of its majority stake in Oltchim, as part of a commitment to economic restructuring being carried out in consultation with, and with financial support from, the IMF.

The privatisation process has been postponed several times.

Based at Ramnicu Valcea in southern Romania, Oltchim produces caustic soda, petrochemicals, agrochemicals, inorganic products and building materials, including insulating PVC for panels, doors and window frames.

($1 = €0.81)
(€1 = New Lei 4.53)


By: Marian Chiriac
+44 20 8652 3214



AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly

ICIS news FREE TRIAL
Get access to breaking chemical news as it happens.
ICIS Global Petrochemical Index (IPEX)
ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index