Oltchim management resigns as Government plans sell majority stake

Oltchim management resigns as Government plans to sell majority stake

6:29 AM, 10th September 2012
Oltchim management resigns as Government plans to sell majority stake

VALCEA, ROMANIA: The management of Romanian Oltchim SA (OLT) including the CEO resigned and employees staged a protest as the government prepares to sell a majority stake in the chemical company this month. Constantin Roibu, CEO, who has led Oltchim for two decades, and 16 other directors, quit, citing a ‘lack of dialouge’ with the head of the Economy Ministry’s industrial asset-sale office. Communication problems blocked financing initiatives.

About 200 employees demonstrated in front of the company because of unpaid salaries over the past two months. Prime Minister Victor Ponta said two ‘big’ investors are interested in acquiring a majority stake in Oltchim, which the company plans to sell through an auction on 18 September 2012 as part of a pledge to the International Monetary Fund. He must sell Oltchim shares and a minority stake in natural-gas grid operator Transgaz SA (TGN) this month to get IMF board approval to unlock the next tranche of its precautionary accord.

“There is no other solution for Oltchim, but to have a private investor willing to keep the jobs and secure the needed financing because the government can’t afford to pump money into the company anymore. We were concerned at one point that no company will show interest in Oltchim and now we have two big companies from two totally different geographical areas,” said Ponta. The Economy Ministry plans to sell its 188 million Oltchim shares at an indicative price of 0.1 lei ($0.02858) a share and will also offer the company debt to the state of about 1.8 billion lei ($502 million) after it failed to convert the debt into shares because of a disagreement with minority shareholders.

© Bloomberg News



Your Comments (Up to 2000 characters)
Please respect our community and the integrity of its participants. WOC reserves the right to moderate and approve your comment.

Related News

Transocean to sell 38 shallow water drilling rigs for $1.05 billion

VERNIER, SWITZERLAND: Transocean Ltd agreed to sell 38 shallow water drilling rigs to Shelf Drilling International Holdings Ltd (Shelf Drilling) for a ...

Read more
DuPont, D-SUN to increase adoption of solar energy

WILMINGTON/WASHINGTON DC, US: DuPont Photovoltaic Solutions and Distributed Sun LLC (D-SUN) are collaborating to help drive increased adoption of sola ...

Read more
Merck, Symphogen sign Sym004 license agreement

DARMSTADT, GERMANY: Merck has signed an exclusive worldwide license agreement with Symphogen A/S, Copenhagen, Denmark, for Sym004, an investigational ...

Read more
EU investigates anti-dumping of solar panels imports from China

BRUSSELS, BELGIUM: The European Commission started anti-dumping investigation into imports of solar panels and key components from China. According to ...

Read more
GAIL, UPSIDC to develop ‘Plastic Park’ in Uttar Pradesh, India

NEW DELHI, INDIA: GAIL (India) Ltd, the flagship natural gas company of India has signed ‘Memorandum of Understanding’ with UPSIDC on 5 Se ...

Read more
Foster Wheeler bags new terrace wall steam reformer contract in Russia

ZUG, SWITZERLAND: Foster Wheeler AG’s Global Engineering and Construction group subsidiary is awarded a contract by JSC Gazprom Neftekhim Salava ...

Read more
www.worldofchemicals.com uses cookies to ensure that we give you the best experience on our website. By using this site, you agree to our Privacy Policy and our Terms of Use. X