State gives up capital increase of Oltchim

The Ministry of Economy and Trade will give up the capital increase at Oltchim. The measure is necessary in order for the privatisation process of the company to be set in motion by the end of the year, according to an emergency draft ordinance published on the ministry’s site. The publishing of the draft ordinance boosted Oltchim’s shares on the Stock Exchange by 10% in Monday’s session. By this emergency ordinance, the MEC would be authorised by the Government to revoke the decision of the Extraordinary General Meeting of Shareholders from November 2003, which approved the conversion into shares of receivables worth 95.2 million dollars (some 76 million euros), which belonged to the former AVAB (Banking Assets Resolution Authority). By the transfer of these shares to AVAS and later to the MEC, the interest of the state in Oltchim’s share capital rose from 53.2% to 95.7%. The move was contested in court by minority shareholders SIF Oltenia and the Lindsell investment fund, but the court has not so far delivered a definitive ruling.