Romania Economy Ministry: Not A Good Time To Sell Oltchim

04.12.2011 By Florentina Dragu

Romania will wait for the European Commission’s ruling on a debt conversion at chemical plant Oltchim (OLT.RO) before attempting to privatize the plant, the head of Economy Ministry’s privatization office OPSPI said Tuesday.

Romania will wait for the European Commission's ruling on a debt conversion at chemical plant Oltchim (OLT.RO) before attempting to privatize the plant, the head of Economy Ministry's privatization office OPSPI said Tuesday.

"It's not the right moment to privatize Oltchim, because the company's capitalization is too small," Victor Vlad Cazana said at the MEDIAFAX Talks about the Restructuring of Loss-Making Companies conference.

The Economy Ministry, Oltchim's majority stockholder, said in February that is looking to hire a consultant for the company's privatization, which could take place in the first half of 2012.

The ministry owns 54.79% in Oltchim. End-2010, Oltchim reported total debts of roughly 2.29 billion lei (EUR1=RON4.1152), up 22% on the year.

On the Bucharest bourse Tuesday morning, Oltchim traded up 0.7% at RON0.433 a share.