Kazakhs can retain majority stake in Petromidia by paying just 100m euros to the state

Rompetrol group, controlled by Kazakhstan's KazMunaiGaz, is in a much more comfortable position in the talks with the state on the repayment of the 571m-euro bonds of Rompetrol Rafinare Petromidia, maturing in September, after taking over around 17% in RRC stock in the past month from Stock Exchange investors for 66m euros. The complete recovery of the loan provided by the state to Rompetrol Rafinare company in 2003 seems increasingly less likely, in the context where, with 100m euros, the Kazakhs can retain their majority stake in the refinery. Thus, even the scenario the Finance Ministry published one week ago, stipulating the recovery of half of the loan granted to Petromidia (around 285m euros) may not materialise. At present, the Kazakhs have come to own 93% in Rompetrol Rafinare, a stake likely to rise once the tender offer carried out on the Bucharest Stock Exchange has been finalised. Before the offer, the situation was more complicated for the Kazakhs, who owned just 76% in RRC and would have indeed needed to redeem at least half of the bonds held by the state to be sure they keep control over the refinery.