Oltchim finalises capital increase

The final step in gaining approval for the latest capital raise by the Oltchim Ramnicu Valcea chemical plant was taken on Monday when the National Securities Commission agreed to register the new value of Oltchim’s share capital and the company’s new shareholder structure.

The raise was approved by the company’s General Meeting of Shareholders as far back as 2003, but several minority shareholders subsequently attacked the decision in court. The delayed registering of the capital raise operation has made it impossible for Olchim to be put up for sale again.

In 2003, Oltchim shareholders decided to convert to equity the sum of almost 100 million euros the company owed to the Banking Asset Resolution Agency (AVAB), which later became the State Asset Resolution Agency (AVAS).

The decision means that the share capital of Oltchim will rise from 323.5 billion ROL to 3,549 billion ROL, with the additional issue of shares to enter the portfolio of the Ministry of Economy and Trade (MEC), which took over the participation of the Privatisation Authority. At the time, the Privatisation Authority owned 53.25% in Oltchim stock and, following the capital raise, came to own 95% of the stock, with the stakes of minority shareholders having been heavily diluted. The minority shareholders contested the fact that the conversion of debts into equity had been performed at the face value of the stock and not at the reassessed value of the net asset per share.

Oltchim stock is listed on the first tier of the Bucharest Stock Exchange and has enjoyed strong growth thanks to the strongly ascending tendency on the market. vlad.nicolaescu@zf.ro