Much too early to name names for BCR investors

The privatisation date of Banca Comerciala Romana (Romanian Commercial Bank – BCR) will be that moment when a strategic investor buys the controlling interests and the entities of the state no longer hold shares or voting rights in excess of 11.825% in the share capital and no longer have “the power to either directly or indirectly set the course for the bank’s management and policies.” This is written in the law enacting the emergency ordinance on the completion of the sale of 25% in BCR plus two shares to EBRD and IFC and of another 8% to the bank’s employees association. The law has been sanctioned by the President of Romania.

The European Bank for Reconstruction and Development (EBRD) agreed to the Romanian Government’s plan to sell a further 25% of the shares it holds in BCR to a strategic investor, Jean Lemierre, EBRD president stated. The operation should be done by the end of this year or next year.

Lemierre says it is not only the timing of the second step that is important but also how it will be made. “Preliminary talks with investors interested will be needed to see what exactly can be done,” EBRD’s President said.

He feels the business plans of the potential strategic partners have to be discussed, as do their visions and what they intend to turn BCR into, considering how important the bank is for the Romanian economy.

The structuring of the process will be done together with IFC.

As far as EBRD is concerned, the buyer of the second 25% stake must necessarily be a large bank and not a group of investors. Lemierre says it is still much too soon to be talking about bank names.

“I know there’s interest and I am positive the number of potential investors will increase. I’ve been told the Finance Minister has had such talks but we must agree on every single detail of a transparent manner for continuing this process, taking every potential investor into account,” Jean Lemierre said.

EBRD and the Governmental representatives agreed the State would sell the second 25% stake out of its current 45% interest in the largest Romanian bank, while EBRD and IFC would preserve their minority blocking position of 25% plus two shares by 2006.