Investor refuses to sign Romanian Oltchim contract due to alleged inconsistencies

The contract for Oltchim Ramnicu-Valcea privatization between the Office of State Ownership and Privatization in Industry (OPSPI) and businessman Dan Diaconescu wasn’t signed today (September 24 ), as it was previously expected. Diaconescu said that the contract has missing clauses, provisions and annexes and that OPSPI's document differs from the form announced simultaneously with contract specifications. Diaconescu said that his lawyers stayed at the Ministry of Economy to clarify the situation and that after the contract is signed, he will sell shares purchased from the state, to citizens “probably at stock price." The auction winner announced earlier that he wanted to sign a contract with OPSPI today, saying that once the was signed, money would be put in company's bank accounts to cover wages and working capital needs. Diaconescu’s win in the privatization of Oltchim has triggered debate in the media, and even comments from high level politicians, as many fear he does not have the money to take over the producer. The businessman, owner of OTV television station and also head of the political party Partidul Poporului Dan Diaconescu, offered RON 203 million for Oltchim – some EUR 45 million. He won 54.8 percent in Oltchim. Romania’s Government approved earlier in August the privatization strategy for Oltchim Ramnicu Valcea, where the state will sell the 54.8 percent package it owns in the company, as well as the debt package held by AVAS, worth some EUR 400 million. Ioana Toader, ioana.toader@romania-insider.com