“Face-to-face” negotiations for the sale of a 25% stake plus two of BCR’s shares to the European Bank for Reconstruction and Development (EBRD) and International Finance Corporation (IFC), World Bank’s investment arm, might start as late as this week, Nicolae Danila, chairman of Banca Comerciala Romana (Romanian Commercial Bank -BCR), told Ziarul Financiar.
“Direct talks have not begun yet. So far, there have been several exchanges of documents including terms and conditions pertaining to the restructuring process the bank should be subject to. These are not simple matters,” says Danila.
The bank’s chairman states that, although a rather “hybrid” privatisation method is involved, the sale of the blocking stake to the EBRD-IFC consortium is “a step we have to take, the more so as it will confer wider credibility to the bank”. Negotiations are not smooth, considering that EBRD and IFC are trying to make sure they will have their say in the orientation of the management of the largest Romanian bank. Postponed several times, the start of the privatisation process should come this autumn, the first stage being the conclusion of a transaction with the two international financial institutions.
Hildegard Gacek, EBRD director for Romania, last month said that the draft of the buy-sell contract for the BCR stake might be finalised by mid this month, so that it could be discussed by EBRD and IFC boards. The Government set this deadline as a new commitment to the IMF in the wake of the one that was exceeded this spring.
The transaction to be sealed with EBRD and IFC will provide an important price clue for the main stage of the privatisation process, namely the sale of the majority stake to a strategic investor. In line with the latest privatisation strategy approved by the Government, the minimum sale price per one share of the 51% majority stake cannot be lower than the price per share paid for the total or partial repurchase of the shares sold to EBRD and IFC. razvan.voican@zf.ro