The wealthiest Romanians, Dinu Patriciu, Ioan Niculae, Ion Tiriac, Gabriel Popoviciu and Dan Adamescu could easily come up with EUR50 million each, so as to buy 1% in Petrom, at the current bourse price.
They could be joined by other powerful investors, such as the Cristescu brothers, Ovidiu Tender or Gabriel Comanescu, some of the most powerful domestic industrialists, Dorinel Umbrarescu and Nelu Iordache, two of the most powerful builders of Romania, or “retailers” Dragos Paval (Dedeman) and Cezar Rapotan (Arabesque).
They and a few others could cover at least half of the Petrom share offering, the largest in the history of the Bucharest stock market, and could ensure that Romania would still have a say in the general meeting of shareholders or at least benefit in the end from the rising fuel prices, which are hurting their businesses.
Domestic businesspeople have repeatedly complained that the state transferred control of major companies to foreign investors much too easily, while Romanian capital has been shunned in major privatizations. In 1999, Dan Voiculescu, Sorin Ovidiu Vantu and Gelu Tofan made an offer for Petrom to the Democratic Convention government in office at the time but then-Industry Minister Radu Berceanu turned them down. Local investors are now getting a chance to take part in the second privatization of the largest Romanian company.
However, Romanian billionaires have a pragmatic approach when it comes to their money and are not particularly interested in becoming minority shareholders in a company in which major decisions are made in Vienna.
Out of the five billionaires listed above, only Dan Adamescu, owner of Unirea Shopping Center and Astra Asigurari, answered that he would be interested in acquiring shares in Petrom offering.
Ion Alexandru Tiriac, who now runs his father’s group, answered through his assistant that such an investment is not in line with Tiriac Holding’s strategy.
Gabriel Popoviciu, one of the most powerful real estate investors, stated he could not give a clear answer as he did not have any details about the offering.
At this moment, all that is known about Petrom offering is that it will most likely take place in the second half of July, but the price and the percentage of the offering that will go to domestic investors have not been set.
Dinu Patriciu and Ioan Niculae did not answer ZF’s questions.
With a few exceptions, Romanian entrepreneurs have quite a small presence in strategic industries, such as energy and banking, and decisions in these sectors are made by major foreign groups, which do not necessarily take into account the needs of Romanian businesspeople.
Asked whether Romanian businesspeople should be encouraged to buy Petrom stock, the representatives of the business environment are skeptical.
“Such an investment is not made out of patriotism,” says Florin Pogonaru, president of the Association of Romania’s Businesspeople (AOAR).
The largest Romanian investors on the bourse also have different opinions.
“I believe a lot of people would be interested in buying Petrom shares. Of course I’m interested, but at first I must see the offer prospectus and the price the shares are sold,” says Marius Cristescu, owner of Bega Group.
Ovidiu Tender says he is not interested in buying Petrom shares as the group’s philosophy is to invest in companies in which it can have control.