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 ?xml:namespace>
($1 = €0.81)
(€1 = New Lei 4.53)
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