Shareholders of Romania's state-controlled natural gas producer Romgaz (BVB: SNG) approved the acquisition of the production assets of fertiliser producer Azomureș for up to EUR 69 million, clearing the final major hurdle for the transaction.

The General Meeting of Shareholders approved the deal with 3.14 billion votes in favour, representing 81.45% of total voting rights and 90.18% of the valid votes cast, after Romgaz's Board of Directors had already authorised the signing of the purchase agreement.

According to Romgaz, the transaction consists of a fixed payment of EUR 46.5 million, plus up to RON 49.8 million (EUR 9.5 million) for inventories of raw materials and consumables and up to RON 68.78 million (EUR 13.1 million) to cover operating costs incurred between signing and completion of the transaction. The final acquisition price may therefore reach approximately EUR 69 million.

The acquisition covers all assets directly related to Azomureș's production activity, together with the transfer of the contracts and employees required to continue operating the plant.

Romgaz announced on May 28 that it had signed the purchase agreement with Swiss-owned Ameropa, which controls Azomureș, after several months of negotiations. According to previous company disclosures, the agreed price is well below the approximately EUR 200 million reportedly sought by Ameropa and also below the EUR 100 million initially offered by Romgaz, according to unconfirmed market reports.

Azomureș is Romania's largest fertiliser producer and the country's only operational fertiliser plant. However, production has been repeatedly suspended or operated at reduced capacity in recent years because of high and volatile natural gas prices.

Interim prime minister Ilie Bolojan said the acquisition would help secure a stable domestic supply of fertilisers for Romanian farmers at more predictable prices.

The transaction does not include all of Azomureș's assets. Romgaz said it will acquire only the assets directly linked to the plant's core production activities and retain only the employees necessary to operate those facilities.

iulian@romania-insider.com

(Photo source: Inquam Photos/Adel Al-Haddad)