State preparing exit from biggest local company

Pressured by the need for cash and by the 600 million-euro capital increase Petrom wants to conduct, the state is about to quit the shareholding structure of the biggest company in Romania.

The Economy Ministry, which owns 20.6% in Petrom (SNP), the biggest local company, is getting ready to sell an 11.84% stake in the company on the stock market, from which it might collect more than 450 million euros, according to the prices at which SNP traded yesterday.

The decision was announced by Economy Minister Adriean Videanu last month and comes at a time when the state is strapped for cash. The cash flow problem would have caused the state to lose its position as Petrom shareholder anyway given that the company intends to conduct a 600 million-euro capital increase.

“The Economy Ministry will continue to manage an 8.8% stake in the share capital, of which 8% will be sold to employees,” the explanatory note of a Government Decision draft devised by the Economy Ministry reveals.

The majority shareholders of Petrom, OMV, say they are interested in a potential acquisition of the shares the state will put up for sale.