The most powerful Romanian steel and iron trading companies, which had joined forces to buy Sidex, are now standing up against PM Adrian Nastase’s statements questioning their determination and capability to participate in the privatisation of the plant.
The consortium is composed of Metanef, Metalexportimport, Grivco and Metaltrade. Grivco belongs to businessman Dan Voiculescu, the president of the Romanian Humanist Party (PUR), the governing ally of the Party of Social Democracy (PDSR).
This is the first sign of economic strain between the leaders of the two governing parties. It was preceded by mutual accusations regarding political and administrative issues: while Premier Adrian Nastase resented PUR’s taking in new members coming from other parties (PNL, ApR), Dan Voiculescu said his party did not receive all the positions promised in the public administration.
“I don’t understand this opposition towards our intentions and all these statements challenging a right granted by the regulations of Sidex’s privatisation process: to make an offer. If the international groups take loans to participate in the privatisation, because they’re not going to bring their money anyway, I don’t see why we shouldn’t do the same,” said atefan Marginean, Metanef president.
PM Adrian Nastase on Monday commented that the Romanian group does not seem worthy of consideration. He specified that the English-Indian group Ispat was the only company to have submitted “a serious bid” for Sidex’s privatisation.
Representatives of the trading companies argue that Nastase’s statements are not correct, as long as the plant will go to the highest bidder not to the most famous suitor.
The consortium says it will also deposit the $45-47 million guarantee, although this is not compulsory in order to take part in the privatisation, as the technical specifications book is enough.
“We’ve paid $40,000 for the technical specifications book and we’ll deposit the guarantee (which will grant the four companies access to Sidex’s confidential data ) although one may say I know the plant even better than it is presented in the official privatisation documents,” atefan Marginean stated.
The interests revolving around Sidex are extremely high, considering additional activities. The company run by Marginean is directly interested in taking over Sidex because all the plant’s imports and exports are carried out through harbour handling company Minmetal, held by Metanef. At the same time, Metaltrade owns two harbours in Galati area.
The Romanian consortium, like France-based Usinor, which wants the privatisation of Sidex management only, for the moment, has certain trouble with some inconsistencies in the technical specification book.
Their main problem is a governmental decision issued in November last year requiring the creditors of the plant (Finance Ministry, Industry Ministry, Labour Ministry etc) to specify how they wanted the conversion of the plant’s debts into shares done, in 45 days’ time.
Sidex’s debts amount to more than $900 million. The conversion has not been done so far, as the shareholding structure is not clearly defined yet.