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Bucharest
October 28, 2020
BUSINESS

Gov’t to sell 27 pc of Rompetrol shares

A draft government decision shows that the state plans to organize a tender for this package of shares, Kazakhstan’s KazMunaiGas having first-purchase rights, economica.net informs.

The state, through the Energy Ministry, is putting up for sale a minority package of 27 per cent of Rompetrol Rafinare shares, asking for a minimum of USD 200 M, a draft government decision shows. The state would be left with a package of 18 per cent of Rompetrol Rafinare shares. Kazakhstan’s KazMunaiGas, owner of Rompetrol Rafinare, has first-purchase rights.

The strategy is part of a complex agreement that the Romanian Government reached with KazMunaiGas in 2013. Thus, apart from the provision that the Kazakh company should have first-purchase rights, the two sides also agreed that the state’s remaining 18 per cent package should remain in its property for at least another three years. Another part of the agreement stipulates that the Kazakh side should set up, in the shortest of times, an investment fund worth USD 1 bln for energy investments in Romania.

According to the draft Resolution on the approval of the Strategy for the privatization of Rompetrol Refinery SA, the sale procedure will go through the following stages: competitive bidding for a price higher than the asking price followed by the sale of the stake, or Dutch auction for prices progressively lower than the asking price, if the latter is not offered.

Under the draft Resolution, the Ministry of Energy, Small and Medium-sized Enterprises and Business Milieu is required not to accept the deal for a price of less than 200 million US dollars.

 

 

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