Oltchim Needs Strong Privatization Partner - GM

05.10.2011 By Andrei Circhelan

Romanian chemical company Oltchim Ramnicu-Valcea (OLT.RO) should be sold to a solid company, which considers the chemical plant's strategic importance and which would act to the benefit of employees, Tuesday said Oltchim general manager Constantin Roibu.

"We salute the government's decision to maintain Oltchim on the privatization list and we hope this process will have a strong winner who takes into consideration Oltchim's strategic importance on the petrochemical market," Roibu said in a news release.

Late-February, Roibu said Oltchim's privatization might not be in state's advantage due to the huge difference in the value of the company's assets and its share capital.

In February, the Romanian economy ministry said it plans to buy consultancy for the chemical plant's privatization, which should be complete in the first half of 2012.

People close to the matter told MEDIAFAX Tuesday that the government has maintained Oltchim's privatization as a goal in the latest letter of intent sent to the International Monetary Fund.

The chemical plant has some 3,500 employees and it has concluded the first quarter this year with a loss of 2.64 million lei (EUR646,000), significantly narrower than RON52.8 million in the same period of 2010.

The company said the improvement in financial results could turn Oltchim's privatization process into "a success."

Oltchim has a share capital of RON34.3 milion, divided into 343 million shares with a face value of RON0.1. The stock is 54.7% owned by the economy ministry, while German-registered PCC holds a 12.1% stake. Carlson Ventures International has recently raised its stake in Oltchim to 11.92%.

Tuesday in Bucharest, Oltchim shares were up 2.3% at RON0.45. (EUR1=RON4.0885)