The two-stage method comprises a competitive, unbinding negotiation round, followed by a first-price sealed bid auction, the ministry said.
Additionally, interested investors can carry direct negotiations with oil company OMV Petrom (SNP.RO) to purchase its Arpechim refinery, which is Oltchim’s main supplier of raw material.
Oltchim has a share capital of 34.2 million lei (EUR7.8 million), split into 343.2 million shares with a face value of RON0.1. Minority stockholders include Germany’s PCC with a 17.47% stake and UK-registered investment fund Carlson Ventures with 14.02%.
Potential buyers are advised that the company’s share capital, and implicitly the stock package put up for sale, could suffer modifications during the privatization process, following a debt-to-equity swap approved early March.
The European Commission has authorized the conversion into shares of public debt amounting to around EUR135 million for Oltchim. Following the operation, the Romanian privatization authority AVAS will become majority holder in the chemical producer.
According to a document obtained by Mediafax, the government plans to issue an emergency ordinance to transfer the majority stake under AVAS’ authority, without subjecting it to a shareholders’ vote.
The debt-to-equity swap would force minority shareholders to contribute tens of millions of euros to the operation in order to preserve their current stock in the company.
According to the above-mentioned document, four companies have already expressed interest in buying the majority stake in Olcthim. The potential buyers are Russia’s energy producer TISE, Romanian Rompet Rogas, Forte of the United Arab Emirates and Germany’s PCC.
Oltchim reported a loss of RON270 million in 2011, almost 21% wider on the year, despite a 17% increase in sales to RON1.53 billion.
On the Bucharest bourse Thursday, Oltchim closed up 6.95% at RON1.278 a share, amid a slightly rising market. (EUR1=RON4.3672)