Aluminium producer Alro Slatina, which was privatised in 2002 for 11.4 million euros, has now reached a market value of 2.5 billion euros. The state currently owns 10% of Alro, through the Property Fund, with the stake calculated at 250 million euros on the Stock Exchange.
In addition, the owner of Alro, Dutch Marco Industries Group, controlled by Russian businessman Vitaly Matsitski, has gained more than 2 billion euros in the five years since the company's takeover. Marco Industries currently owns more than 87% in Alro, with the value of the stake exceeding 2.17 billion euros.
Marco Industries became a majority shareholder in Alro in 2002, when it took over 10% for 11.4 million euros. Marco had bought 41% in an aggressive acquisition campaign on the capital market previously, with Alro being listed on the Bucharest Stock Exchange. For a time, the legality of Alro Slatina's privatisation was challenged in the press, and last year the National Anti-Corruption Department began prosecution procedures against the legality of the privatisation contract of the plant. The investigators said Alro's privatisation had been illegal and its purpose had been to make those involved unjustifiably rich. As yet, no specific individuals have been indicted.
The first talks relating to the privatisation of Alro began in 1999, when the Romanian government included the company in the PSAL agreement signed with the World Bank. An international syndicate comprising of Paribas Corporate Finance, Central European Trust and Musat si Asociatii law firm was appointed to provide consultancy services for the State Ownership Fund (SOF) during the privatisation of Alro, and to evaluate the profile of Alprom Slatina.
The consortium identified 18 companies that were interested in taking over Alro, among them major international players such as Pechiney (France), Alcan (Canada) and Alcoa (US), as well as local companies such as the Ana group, controlled by George Copos and Grivco, held by Dan Voiculescu.
At the time, foreign consultants estimated Alro to be worth 450-550 million euros; the company was making profit and did not have any debts to the state budget. The privatisation was delayed due to complex procedures involving the World Bank, and also, as a result of the 2000 elections, the new Government decided to change the selected method of privatisation, which significantly prolonged the process.
Ultimately, two options were chosen - the entire 54% majority stake would be privatised, and only 10% of the company would be sold. No investor showed any interest in taking over the majority stake, as Marco had already accumulated 41% of the company, and was a powerful shareholder who could block the new owner's decisions, so the Nastase Cabinet chose to sell the remaining 10% to Marco. The 11.4 million euros were the only capital the state ever gained from the privatisation of Alro.
The privatisation contract was signed by APAPS (Privatisation Authority) chairman, a position then filled by Ovidiu Musetescu, who is now an MP of the PSD (Social Democrat Party). Musetescu could not be reached when asked to comment.
At the time of its privatisation in 2002, Alro was making 331 million euros in turnover and 27 million euros in net profit.
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