KazMunaiGaz Paid $1.6B For 75% In Romanian Rompetrol Vs. $2.7 Pvs Valued

"Yes, it is true (e.n. the paid price)," KMG informational policies director Ilia Pustogacev said Monday in a press conference held in Astana.

In August 2007, KazMunaiGas bought a 75% stake in Netherlands-registered Rompetrol Group.

The transaction was then estimated at $3.6 billion, indicating a payment of some $2.7 billion for the equity. The financial details of the ownership transfer were withheld at the time.

Swiss-based Rompetrol Holding, controlled by Patriciu, kept the remaining 25% in the group.

Before the sale, Patriciu owned 80% of the group’s shares, while his US partner Philip Stevenson controlled the rest of 20%. Thus, Patriciu received $1.28 billion and Stevenson $320 million, according to data KMG provided.

Pustogacev added Monday that KMG decided not to buy the rest of 25% in Rompetrol.

"Rompetrol acquisition was a success. We decided not to buy the rest of 25%, as we consider the current Rompetrol management is performant and want to keep it," Pustogachev also said.

Patriciu told Mediafax in July he would fill in the position in the group for as least two years and will not sell his shares.

Pustogachev evaluated the Rompetrol group at $2 billion and said KMG could expand in Europa through Rompetrol group.

"Rompetrol acquisition is a way to reach the consumers throughout Europe and if the expansion proves profitable for the group, we will make it," Pustogachev also said.

KMG took mid-September a $2.5 billion syndicated loan to refinance the Rompetrol group acquisition.

The Rompetrol Group operates in 13 countries and employs over 8,000 people. Its main assets are located in Romania, France and southeastern Europe.

In Romania, Rompetrol owns two refineries, Petromidia and Vega.