Pre-emption right accepted for Petrom

The minority shareholders of SNP (National Oil Company) Petrom, the largest company in Romania, will be allowed to participate in the capital increase of Petrom side by side with the strategic investor. After having initially denied the minority shareholders the right to partake in the capital increase, the Economy and Trade minister has changed his mind in the meantime and says it should be granted.

“The pre-emption right of Petrom’s minority shareholders must be observed,” Dan Ioan Popescu, Economy and Trade minister, at the end of last week said.

The Economy and Trade Ministry holds 92.2% in SNP Petrom, with the rest of the shares listed on the Stock Exchange and held by minority shareholders. The powerful Free Petrom Union Federation run by Liviu Luca, SIF Oltenia, the American investment fund Broadhurst Investments and Iulius Baer – each hold some 1-1.5% in the company, with the equity owned by the minority shareholders totalling approximately 3,700bn ROL ($100 million).

The minister says the legislation in force stipulates that the General Meeting of Shareholders endorses the minority shareholders’ pre-emption right for Petrom’s capital increase.

“With respect to the right of the minority shareholders, which include the company’s employees, we will authorise the Economy and Trade Ministry representatives in the General Meeting of Shareholders to vote in favour of observing the pre-emption right of the minority shareholders and implicitly of the employees, in case of a capital increase conducted as part of the privatisation process. This will enable them to participate in this increase, which ensures they retain their initial share in the capital of the company,” Dan Ioan Popescu added.

The Romanian State is selling 51% in Petrom, 33.34% of which directly to the investor and the rest of it through a capital increase. International analysts estimate the 51% to be worth some $1-$1.4bn.
adrian.mirsanu@zf.ro