Romanian PM Wishes In-House Privatization For Chemical Plant Oltchim

Tariceanu visited the plant Tuesday, where the plant's manager, Constantin Roibu, showed him the privatization and investments plans.

Roibu told Tariceanu he intends to take over the petrochemical segment in the Arpechim Pitesti refinery, to increase vinyl chloride production and to start producing polystyrene.

"Oltchim and Arpechim will become the strongest petrochemical center in Europe," Roibu said.

Tariceanu said he would not like the privatization to be unfolded with foreign investors, and Oltchim should be privatized with Romanian capital, "if possible."

Azeri company SOCAR is interested in taking over the Arpechim refinery, one of the two crude oil processing units held by Romania's dominant oil company Petrom, and the chemical plant Oltchim Ramnicu Valcea, which would be included in a regional complex.

The Oltchim Ramnicu-Valcea chemical plant, in which the Romanian state holds the majority stake, might increase its share capital by up to RON954.75 million (EUR265 million), transforming into shares the 508.48 million lei (EUR1 = RON3.6361) debt held by privatization authority AVAS, and minority shareholder contributions.

Minority investors will have the possibility to contribute a total sum of RON446.26 million to the share capital increase, in ratio with the stakes they hold, which gives them the opportunity to keep their shares, according to a proposition of company management found on the agenda of the general shareholders’ meeting set to take place on July 24.

For the increase of the share capital, the company would issue 9.547 billion new shares, with a face value of RON0.1 each. Minority shareholders will have the possibility to trade preference rights on the capital market for ten days, followed by a 30-day interval in which investors might exercise their preference right.

Shares left unsubscribed after this period will be sold through primary public offering.

Oltchim is held by the state, through AVAS, which holds a 53.26% stake. Oltchim minority shareholders include SIF Oltenia, with a 5.9% stake, and other private investors, individuals and companies, which hold 27.9% of shares between them.

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