Romania still ponders sale of half its stake in OMV Petrom after failed attempt last year

After the failed sale of a 9.8 percent share package in oil and gas company Petrom last year, which is around half of the state's stake in the largest company in Romania, the Romanian Government is still scratching its head over whether listing is advisable. “There is an entire discussion about the opportunity to list Petrom. The idea has not disappeared, it is still a valid option,” said Dan Suciu, the Government's spokesman.

Romania attempted to list an extra 9.8 percent of OMV Petrom in July last year. Petrom's shares are already floating on the Bucharest Stock Exchange. The offer last year failed after less than 80 percent of the shares were subscribed by investors. The public offer started with a maximum price of RON 0.46 per share, while mid-way through the process the Romanian Government established a minimum RON 0.37 price per share. This translated to a minimum price of EUR 438 million for half the government’s stake in OMV Petrom. The Romanian state owns a 20.64 percent package in OMV Petrom. Austrian OMV is the majority shareholder in the company. Fondul Proprietatea owns a 20.11 percent stake, the European Bank for Reconstruction and Development, some 2.03 percent; while 6.21 percent is free floating on the BSE. Petrom posted a record profit last year, of EUR 886 million, which brought Romanian president Traian Basescu’s disapproval. He recently said he believes the company's policy to be incorrect, for having made such a profit during tough economic times. OMV Petrom is the largest company in Romania, with a turnover of EUR 5.3 billion last year. editor@romania-insider.com