Romanian oil pipeline network operator Conpet to quadruple capital

The shareholders of Romanian oil transport company Conpet Ploiesti, the owner of the country’s oil pipeline network, will vote in an Extraordinary General Meeting on July 4 on increasing the company’s share capital almost four times, from RON 28.6 million (EUR 6 mln) to RON 130.3 million (EUR 27 mln).

The capital increase will be operated to include in the capital the value of the land the company owns and uses, not yet accounted as own capital.

The state controls Conpet through the Energy Ministry, which holds 58.71% of the company’s shares. To give minority shareholders the chance to prevent their stakes being diluted following the in-kind contribution of the state (the land is considered to be the state’s contribution to the company’s capital) new shares will be issued and offered to the other shareholders for cash.

The process will have to take place in some other important Romanian companies that, like Conpet, have not included yet the land owned and used in their capital, the most notable case being OMV Petrom.

(Photo source: Facebook/Conpet SA)