Petrom privatisation options

Romanian authorities insist to sell 33% in Petrom and have the investor acquire control by a capital increase, while the IMF wants the privatisation done at one time by the sale of 51%. Petrom’s privatisation strategy is to be set in the next couple of weeks based on talks with the International Monetary Fund delegation in Bucharest these days. Governmental sources say the IMF keeps pushing for a direct sale of 51% in Petrom to a strategic investor. The Government, on the other hand, would rather sell 33% and have the rest up to 51% covered by a programme of investments a buyer pledges to make. The latter is also the option recommended by the consultant, the consortium comprising CSFB and ING. The IMF insists on the 51% option so that there will be no doubt about the transfer of the company to private property. In addition, the State will get 50% less money if it sells only 33% because the capital increase money will go into the company’s accounts, i.e. into those of the future buyer. ZF