Oltchim minority shareholders score victory

The minority shareholders of Oltchim are one step closer to winning their clash with the state over the cancellation of the capital increase whereby the Ministry of Economy and Trade had increased its stake in the company to 95%. At the end of last week, the Valcea Court of Law sustained the petitions filed in this regard by SIF Oltenia and Lindsell Enterprises. The court ruled in favour of cancelling the decision of the General Meeting of Shareholders from November 2003, whereby the share capital increase of Oltchim was decided. The decision in question took the company”s capital from 323.5bn ROL to 3,549bn ROL via the conversion of the company”s debt to the state, of nearly 100 million euros, into shares. The minority shareholders were not allowed to subscribe during that increase, while the state”s interest increased from 53% to 95% and the minority shareholders” stakes diminished by approximately ten times. The minority shareholders challenged this capital increase in court, attempting to block its registration with the Trade Registry. The resolution of this conflict that has been going on for two years could speed up the privatisation of Oltchim, though the company stated its plans to appeal against the court ruling. “The ruling will not be enforced because there are two more courts we can turn to. I have filed an appeal because the state, which is the principal shareholder, has not asked me not to,” stated Constantin Roibu, Oltchim”s general manager. ZF