Carlson Ventures International considers exit from Romania’s Oltchim

21 September 2011

British investment fund Carlson Ventures International, which owns 14 percent of Romanian majority state-owned company Oltchim, considers an exit from Oltchim SA, if the Romanian state continues to ignore the plant's debts and its worsening financial situation.

“The financial situation and Oltchim's need for restructuring are not sufficiently approached by the Ministry of Economy, and the company floats with no direction without a realistic business plan, a realistic budget and without any kind of strategy to improve the already dramatic situation”, according to the investment fund.

Carlson Ventures International considered that the actions taken by the Romanian state in the past few months show that Oltchim’s privatization process will be delayed considerably, or even canceled. “The ministry of Economy is working on a conversion of the debts into shares at Oltchim SA and the acquisition of a non-operating refineries from OMV-Petrom to integrate it in Oltchim - steps that make no financial sense for Oltchim, which are against the interests of the plant and will further delay or even stop the scheduled privatization”, according to the British investment fund.

In this case, Carlson Ventures’ officials say that if the Romanian state “will not change its attitude” the investment fund thinks of withdrawing its investment in Oltchim SA and will sale the shares it holds in the company.

In June this year, German company PCC SE and investment fund Carlson Ventures International, which together own 31.3 percent of Oltchim have signed an agreement to cast similar votes and follow the same strategy for the company. The two will also participate together in the Oltchim privatization process, once it will start.

PCC and Carlson have called for an urgent restructuring within the company. Based on Carlson’s experience, which has been investing in companies in difficulty, the only viable option for Oltchim is a rapid and profound restructuring, according to the company.

Oltchim holds debts of over EUR 550 million. Romania has pledged to privatize Oltchim chemicals producer at the request of the International Monetary Fund. The main shareholder in Oltchim is the Romanian state, with 54.8 percent of the shares.

Irina Popescu, irina.popescu@romania-insider.com

(photo source: Sxc.hu)

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Carlson Ventures International considers exit from Romania’s Oltchim

21 September 2011

British investment fund Carlson Ventures International, which owns 14 percent of Romanian majority state-owned company Oltchim, considers an exit from Oltchim SA, if the Romanian state continues to ignore the plant's debts and its worsening financial situation.

“The financial situation and Oltchim's need for restructuring are not sufficiently approached by the Ministry of Economy, and the company floats with no direction without a realistic business plan, a realistic budget and without any kind of strategy to improve the already dramatic situation”, according to the investment fund.

Carlson Ventures International considered that the actions taken by the Romanian state in the past few months show that Oltchim’s privatization process will be delayed considerably, or even canceled. “The ministry of Economy is working on a conversion of the debts into shares at Oltchim SA and the acquisition of a non-operating refineries from OMV-Petrom to integrate it in Oltchim - steps that make no financial sense for Oltchim, which are against the interests of the plant and will further delay or even stop the scheduled privatization”, according to the British investment fund.

In this case, Carlson Ventures’ officials say that if the Romanian state “will not change its attitude” the investment fund thinks of withdrawing its investment in Oltchim SA and will sale the shares it holds in the company.

In June this year, German company PCC SE and investment fund Carlson Ventures International, which together own 31.3 percent of Oltchim have signed an agreement to cast similar votes and follow the same strategy for the company. The two will also participate together in the Oltchim privatization process, once it will start.

PCC and Carlson have called for an urgent restructuring within the company. Based on Carlson’s experience, which has been investing in companies in difficulty, the only viable option for Oltchim is a rapid and profound restructuring, according to the company.

Oltchim holds debts of over EUR 550 million. Romania has pledged to privatize Oltchim chemicals producer at the request of the International Monetary Fund. The main shareholder in Oltchim is the Romanian state, with 54.8 percent of the shares.

Irina Popescu, irina.popescu@romania-insider.com

(photo source: Sxc.hu)

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