Norwegian Aker Kvaerner Group has dropped up the idea to sell Romanian heavy equipment maker IMGB Bucharest. It had bought this plant from the Romanian State in 1998 in one of the most controversial privatisation deals signed by the State after 1990.
Less than a year from the signing of the privatisation contract, that is in 1999, the Norwegians announced they were looking for a strategic investor to take over IMGB and the obligations undertaken in the privatisation contract.
The sale plans were brought about by the Norwegian group's worldwide restructuring strategy. The group was on the verge of bankruptcy two years ago, but has managed to recover in the meantime. Albeit it does not fit into the group's worldwide strategy now, either, IMGB has become a profit centre for Kvaerner.
"I recently met the group owner in Oslo and he explained to me it is companies that generate profit he wants. At present, we are no longer looking for buyers for IMGB," said John Saunders, Kvaerner IMGB's chief financial officer.
Aker Kvaerner is held by Norwegian businessman Kjell Inge Roekke.
Moreover, Kvaerner has recently swapped more than $55 million in IMGB debt for equity and has therefore come to own over 99% in this company. Kvaerner fulfilled its investment obligations undertaken in the privatisation contract by granting loans to IMGB, which will be included in the company's capital. Sources close to the company say the Norwegians might come up with a further $4-$5 million in the next two years to increase IMGB's capital.
vlad.nicolaescu@zf.ro
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