Energy deals: 2.4bn-euros in 2007

After, for many years, the state was the only star of deals conducted in the energy sector, last year brought to the forefront those who knew how to build businesses from scratch, which they then sold for hundreds of millions of euros, more specifically for 1.4 billion euros.
Energy deals amounted to around 2.4 billion euros last year, out of a total of 6.5 billion euros, which is the value of the 113 deals included in ZF’s Top Deals Yearbook for 2007. The most spectacular ones were those which directly involved the companies’ owners.
The deals are all the more interesting, since they were all concluded a few weeks before the crash of the international markets, which inevitably led to a drastic decline in the value of many companies.
The market practically helped those who had the courage to conduct such deals, most of which were signed in the second half of the year, as it was still stable at the time they were sold. In the last quarter of 2007, the international context became less and less favourable, biting into the value of world-class businesses.
None of the “star” sellers in 2007 was affected by this negative context in terms of the sums they collected, because they knew when the best time was to relinquish control.
For companies in the energy sector, there was another factor which sent their value to dizzying heights: the appreciation of the barrel amid the first signs of weakness from the dollar.
Dinu Patriciu, one of the leading businessmen in Romania, sold 75% of Rompetrol Group in late summer of last year, continuing as its chairman.
The buyer was Kazakh state-held KazMunaiGaz, which needed a market for the large amount of petroleum it holds.
After several failed attempts at tapping into the European market, Rompetrol proved to be the right solution at the right time.
The Rompetrol group, which includes 40 companies, is present on 13 markets, was assessed at 3.6 billion dollars, with the value of the transaction being put at 2.7 billion euros.
Another deal, long-awaited by the market, but confirmed as late as last year, was the one by which the Borcea family eventually decided to sell the Crimbo Gas business to the largest player on the European liquefied petroleum gas market, Dutch group SHV.
The transaction is put at 50 million euros, and, according to the latest information available, an on-site assessment of Crimbo Gas’s assets is currently being conducted.
The whole sum derived from this deal will be collected by the Borceas, given that they are the only shareholders of Crimbo Gas.
The deal concluded by the boss of Dinamo (Borcea) balances financial forces on the LPG market, after the exit of Anglo-Dutch giant Shell, considering that the newcomer on the market has a turnover worth 5.5 billion euros on the LPG market, and is present in 26 countries.