Slatina-based Alro and Alprom companies will be put up for sale simultaneously, through the launch of a joint offer, but without originally initiating a merger process because it was considered that this would delay privatisation and limit down the number of bidders.
The Romanian Government approved a decision draft related to the privatisation strategy of Alro and Alprom Slatina, commercial companies that have been included in the PSAL programme concluded with the World Bank, announced the same sources.
Through the respective decision, the Executive mandated the State Ownership Fund to sell the majority stake it owned in the two companies, of 54.72 percent in Alro and respectively 69.96 percent in Alprom Slatina, to some strategic investors, by holding negotiations with those who had submitted firm buying offers.
Specialists of CAIB Securities Romania brokerage consider that Alro gained from the fact that this merger would no longer be sealed, because Alprom would have pulled it downwards.
"The big beneficiary of this fusion would have been Alprom, but it is uncertain whether this merger would have brought along a higher value of the two companies' privatisation," CAIB analysts think.
Under these circumstances, selected investors will decide the fate of the two companies, but it is possible that the value of Alro company should be much higher for those interested only in this company.
CAIB analysts consider at the same time that indecision linked to the merger between Alro and Alprom has considerably decreased the value of the entire deal.
The merger between Alro and Alprom was announced as certain last summer and even a decision issued by Alro's general assembly of shareholders was made public. Market rumours, which later on came true, indicated even a swap ratio between Alro and Alprom stock that was clearly favourable to the latter company.
The project was subsequently delayed and the merger did not take place eventually. The merger project and especially the conversion ratio between these stocks determined a parallel evolution of Alro and Alprom stock. Therefore, the price of the latter stock registered a powerful increase amid speculations, before subsequently posting an as rapid slump.
Later on, toward the end of last year and even during the current year, the merger between Alro and Alprom companies was again brought to public attention before it passed into the background once again.
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