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Wednesday, January 19, 2005

Oltchim privatization postponed

The privatization of the chemical plant, Oltchim, in Rimnicu-Valcea, will start when the litigation regarding the increase of the company's equity and the number of shares owned by the Ministry of Economy and Commerce (MEC) has been cleared up, yesterday stated the minister of the Economy, Codrut Seres.

On November 28, 2003, the Shareholders' Extraordinary General Assembly decided to convert the debt Oltchim had to the Authority for Banking Assets' Recovery (AVAB), which later became known as the Authority for State Assets' Recovery (AVAS).

According to this decision, Oltchim's equity was expected to rise from 323.5 billion ROL (8.1 million euros) to 3,549 billion ROL (88.72 million euros).

At that time, the privatization authority owned 53.25% of Oltchim's shares, while the remaining shares were owned by the investment funds Lindsell Enterprises Limited (12.03%), Financial Investment Company (SIF) Oltenia (7.2%) and other shareholders (8.97%).

Afterwards, the shares owned by the privatization authority were taken over by the MEC.
At the end of 2004, MEC controlled 53.2% of Oltchim's equity, while the latest mention at the Trade Register Office shows that MEC currently owns 95.7% of the shares.

Posted by Iulia Rasoiu : 1/19/2005 11:15:00 am