The asset sale will continue over two years and the reason for it is the company’s plan to focus solely on its core business. The ‘for sale’ ads were published on the company’s corporate website on a page named Petrom Imobiliare and a dedicated website, petromrealestate.com.
“More auctions will follow. In all, about 700 assets will be put up for sale and the sale program will take two years,” market sources say.
Petrom’s core business is the extraction of crude oil and natural gas, but before the Nastase Government decided to privatize the company in 2004, it was involved in a number of other businesses. As shown in its privatization contract, the operations of the company stood at about 180, according to the EU classification of economic activities NACE, such as growing of cereals, growing of vegetables, growing of other tree and bush fruits and nuts, raising of swine/pigs, manufacture of bread and manufacture of soft drinks; production of mineral waters and other bottled waters.
The company has sold many of its operations over the years such as the mineral water business, and also closed the Doljchim chemical plant and the Arpechim refinery.
The about 70 pieces of property auctioned by Petrom, which accepted bids for them until April 30 are not located in Bucharest. According to the data centralized by ZF, the assets put up for sale total 200,000 square meters and could be worth EUR8 million to EUR10 million. Petrom officials did not comment by press time.
(English version by Loredana Fratila-Cristescu)