The battle for Romarc Fuel shares

Romarc Fuel company (Petrom Aviation), one of the main fuel suppliers for Tarom planes, has become the main attraction for certain economic and financial interest groups.

Businessman Dan Voiculescu, Broadhurst Investment Fund (the largest such fund in Romania) and SNP Petrom are now, either willingly or not, engaged in a competition for the purchase of a company with a strategic position and a potential acknowledged by every market analyst.

Petrom already holds 33.34% in the company. Dan Voiculescu has bought 3% lately and keeps on buying, while Broadhurst joined in to gain later, as it has previously purchased 2.2%.

Market analysts have different views on the interest for Petrom Aviation shares. Some of them say both Broadhurst and Dan Voiculescu are buying stock expecting Petrom to launch a public take-over bid, offering 3,000 lei/share.

Petrom, which is in control of the company, may not buy additional stock unless it puts out a public take-over bid on the market, which makes room for another speculation: it is buying through intermediaries who purchase shares at low prices (Broadhurst, Voiculescu).

As soon as the two get more than 17%, Petrom will move on and launch a bid for shares at a price previously set, in order to obtain the controlling interests in Romarc, that is over 50%.

A third version has it that both Dan Voiculescu and Broadhurst are major investors that will not settle for a medium-term speculation and will go for more.

Dan Voiculescu through Grivco owns another company providing services for air transport companies (kerosene supplying included): Grivco Air. The company operates only on Baneasa Airport and analysts do not overrule the possibility of Dan Voiculescu planning to expand to Otopeni.

After all, the other two funds holding stake in Romarc (Rivta Handelges MBH and East European Reconstruction Fund) control 32.49% in the company and will be more than happy to get a good offer. Which offer may come from anybody.

Romarc is one of the three main fuel suppliers for Otopeni Airport, along with British Petroleum and Shell and registered 142bn lei in turnover last year.

Broadhurst’s long-term stake is different: Petrom Aviation may become a “driveway” to Petrom. The fund may not buy stock in Petrom as this is a close-end unlisted company for the time being.

In case Petrom engulfs Romarc, the fund run by Siminel Andrei may find itself holding a stake in Romania’s largest trading company, much coveted by other investors, as well. This goes for Dan Voiculescu, too.

Contacted by Ziarul Financiar, Andrei said, “I simply buy shares in Romarc because it’s a good company to invest in,” while Dan Voiculescu declined to comment.