Bids deadline set in Romania's latest Oltchim selloff attempt

12 December 2013 16:58 Source:ICIS News

LONDON (ICIS)--Bidders for a debt-free version of largest Romanian chemical producer Oltchim must submit their bids by 31 January 2014, Romania's economy ministry said on Thursday.

The selection process will begin on 3 February with the winning bidder to be announced soon after, it added.

The privatisation book details how Oltchim II and its assets have been split away from the original lossmaking Oltchim, which has debts amounting to hundreds of millions of euros and is producing at about 20% of capacity due to a lack of working capital and feedstock. It is available for €20,000 ($27,400), the ministry said.

The economy ministry, which holds a controlling stake in Oltchim of 54.8%, placed the company in insolvency proceedings in January this year after an attempt at privatising it last year collapsed.

In November, the ministry announced that the Moscow-based Oil Gas Trade company had made an informal offer to acquire Oltchim with a bid that would include the investment of €300m ($411m) in re-establishing the company as a successful petrochemical producer.

Oltchim's product slate includes polyvinyl chloride (PVC), polyols, dioctyl phthalate (DOP) and caustic soda.

($1 = €0.73)

By Will Conroy