The state will sell through open outcry auction a package of shares representing 26.69 per cent of Rompetrol Rafinare’s registered capital, for a price not lower than USD 200 M, according to the strategy on privatizing Rompetrol Rafinare, a strategy adopted by the Government on Tuesday.
“The Government approved on Tuesday, through a Government Decision, the strategy on privatizing Rompetrol Rafinare, namely of selling through open outcry auction a package of 11,775,349,451 shares, representing 26.6959 per cent of Rompetrol Rafinare’s registered capital, the awarding price being at least equal to the nominal value of this package of shares,” a Government communiqué shows, being quoted by Agerpres.
According to the aforementioned source, the open outcry auction can be a competitive auction or a Dutch auction, depending on the interest shown by investors. According to the privatization strategy, the awarding price should not go below USD 200 M, and in case the bids do so the sale will not be completed.
The memorandum signed on 15 February 2013, approved along with subsequent modifications through Government Decision 35/2014, regulates the general terms of a complex transaction between the Romanian state and The Rompetrol Group (KMG International N.V. after 6 March 2014) owned by KazMunayGas, a transaction structured on four major components: KMG International’s or one of its affiliated companies’ commitment to buy a minority share package representing 26.6959 per cent of Rompetrol Rafinare’s registered capital for a minimum price of USD 200 M; a guarantee that the Romanian state will maintain a non-diluted participation of 18 per cent within Rompetrol Rafinare’s registered capital for a period of three years; the setting up of an investment fund in the form of a stock company, which will invest in Romanian energy projects; as a premise for the implementation of the transaction all litigations and administrative measures started by the Finance Ministry against Rompetrol Rafinare will be cancelled, as a result of the conversion into shares of the corporate bonds owned by the Romanian state and not bought back by Rompetrol Rafinare on their maturity dates.
According to Government Emergency Ordinance 86/2014 and Government Decision 42/2015, the Romanian state exercises the rights it has as Rompetrol Rafinare shareholder through the Energy Ministry. Rompetrol Rafinare shares are traded on the Bucharest Stock Exchange. The company’s registered capital totals RON 4.41 bln and its shareholders are KMG International N.V. Netherlands (48.1136 per cent), the Romanian state (44.6959 per cent) and others (7.1905 per cent).