The investment fund based its decision on worries that Oltchim, which is majority-owned by the Romanian Economy Ministry, will no longer be privatized, or that privatization will be greatly delayed.
Oltchim is one of the state-owned companies involved in a private management program set up by authorities.
Other reasons mentioned by the fund include the fact that authorities want to convert the Oltchim’s debt into stock, and they want to buy a non-functional refinery from OMV Petrom (SNP.RO) and include it in Oltchim.
Carlson Ventures believes that all these elements show Oltchim’s future is uncertain, and they can lead to the worsening of the company’s financial situation, with potentially catastrophic results.
The Economy Ministry owns 54.79% in Oltchim, while German PCC SE holds a 12.16% stake.
PCC SE announced in June that it is acting in concert with Carlson Ventures, and together they hold a 31.3% stake in the chemical plant.
Oltchim shares closed up 0.44% on the day Monday.