Romanian state to sell bulk of its stake in Petrom

The Romanian Economy ministry, which owns 20.64 percent of oil and gas company Petrom's shares, plans to sell 11.84 percent of these shares, according to a recent announcement from the ministry. The government decision project which states the sale was recently submitted to public debate. Based on the market value of SNP Petrom's shares, which is listed on the Bucharest Stock Exchange, the 11.8 percent package would be worth around EUR 450 million, according to Romanian newspaper Ziarul Financiar. The state will keep an 8.8 percent minority participation in the oil and gas company, out of which up to 8 percent will be up for sale to Petrom's employees, according to the project. A recent memorandum from the Economy ministry wrote the state was planning to raise around EUR 1 billion from selling its minority participations in former state – owned companies. The raised funds should go into infrastructure projects. Petrom's majority shareholder is Austrian OMV, which controls 51 percent of the shares. Proprietatea Fund also owns 20 percent of the shares, the European Bank for Reconstruction and Development, 2 percent. The oil and gas company was privatized in 2004. The value of the privatization contract was of EUR 1.5 billion in total, through direct share acquisition and capital increase. Petrom posted EUR 3 billion in turnover last year, with its EBITDA at EUR 696 million. In picture - Petrom's Petrobrazi refinery.