As predicted in last week’s blog post, Germany’s Petro Carbo Chem (PCC) has restated its interest in buying out the state’s remaining 54.79% stake in Romania’s Oltchim.
PCC currently holds a 12.16% stake in Oltchim and now an activist shareholder has restated its interest in examining a bid for the financially-troubled company following pressure from the International Monetary Fund (IMF) for the privatisation of the Romanian state’s 54.79% stake in the firm, according to ICIS news.
Oltchim is in a terrible financial state. On 1 November, Oltchim announced it had been unable to raise the working capital to buy the raw materials needed to restart its Arpechim petrochemical unit, the closure of which has led to severe shortages of feedstock at the firm. It also announced increasing losses.
Oltchim’s main products are polyvinyl chloride (PVC), polyols, dioctyl phthalate (DOP) and caustic soda.
The IMF discussed the merits of privatising Oltchim during October talks on Romanian economic matters with the country’s economy and finance ministries.
The management of the company has been involved in a long-running disagreement with PCC over how best to restore its fortunes.