Buyers of rights from Petrom’s employees disappointed by Govt.’s decision to sell only 1%

The buyers of the rights held by employees of Petrom oil company at the time of privatisation (in 2004), who were promised 8% of their company’s shares at the price paid by OMV during the privatisation process, are disappointed by the Government’s decision to sell them only a 1% stake at the preferential price.

The deal between the investors and the owners of the litigation rights is a more complex arrangement involving the 8% stake and also some compensations asked from the Government for late payment.

It was supposed to be particularly lucrative since the price of the shares of Petrom (now OMV Petrom) has increased substantially over the past 18 years.

Besides the shares, Petro Active Investments SA - the company founded last autumn in Craiova with the only purpose to enforce former Petrom employees’ rights in court - seeks massive compensations from the Government, Profit.ro reported. At some point, they estimated a total volume of compensations equal to 2% of GDP.

Petro Active Investments would pay the former employees of Petrom half of the capital gain generated by the shares plus 30% of the compensations paid by the Government under the arrangement.

Although it was inked in the privatisation contract, it was never clear (and it remains unclear) whether the 8% stake would ever be sold to employees.

A Government draft bill specifies that under 1% of the company’s shares will actually be sold, which disappointed those behind Petro Active Investments SA, according to Profit.ro.

(Photo: Nuthawut Somsuk/Dreamstime)