Austrian oil group OMV was, as expected, after all, the only bidder selected by the Romanian authorities for the sale of the 51% majority stake in Petrom. OMV is getting ready to make its first acquisition of an oil company in the region, which will upset the balance of power already in place in the Eastern half of Europe; the Austrians will thus turn from a company the size of MOL or PKN into a small giant whose overall sales reach approximately 10bn euros.
Until this actually happens, the Austrians need to take the most important step of the transaction, namely pay the price for the takeover of the controlling interests in Petrom. To own Petrom, OMV should pay 600 to 850 million euros at first to get 33.34% in it. All in all, the transaction may amount to 1 - 1.4bn euros, as soon as the strategic investor operates the capital increase. This should be the price of the biggest privatisation ever concluded in Romania.
"Following analysis of the final bids submitted by investors (OMV - Austria, Occidental - US, MOL - Hungary), and based on the recommendations of the privatisation consultant, which comprises the Credit Suisse First Boston - ING Bank consortium and the legal advisory firm Linklaters, the privatisation committee proposed the Economy Ministry and the Office for State's Interests and Privatisation (OPSPI) to begin direct talks with OMV in line with the privatisation strategy endorsed. The purpose of the talks is to reach an agreement on the final version of the privatisation contract to be signed soon," Dan Ioan Popescu, Economy and Trade Minister and chairman of the privatisation committee, announced at the end of last week.
The consultant's representatives added MOL and Occidental had submitted binding bids for Petrom, but they lacked "a few documents", though the main problem was a "substance issue."
Soon after the announcement, OMV's shares listed on the Vienna Bourse rose 2.8%.
MOL's representatives expressed willingness to begin talks with the Romanian authorities over Petrom's privatisation, in case negotiations with OMV fell through.
The Austrian party in its turn was quick to react to the announcement that OMV had been selected as the sole partner for talks over the acquisition of Petrom.
"OMV submitted a well-built bid and a development plan for Petrom, which are the basis for the further operation of the company and which would benefit both parties. Petrom's investment needs will be funded through a capital increase, which is a key element for the acquisition price, and through the cash flow operations. OMV will work constructively with the Romanian Government over the next few weeks in order to reach a mutually agreed conclusion," said the representatives of the Austrian group run by Wolfgang Ruttenstorfer. How much money does OMV need to buy Petrom?
"As a general rule, whenever a publicly listed company is acquired, especially if it is 100% listed, the price bid is about 30% higher than the market capitalisation. SNP has only 7% of its shares traded, indeed, but the same principle can be applied by considering an average capitalisation for the last six months before the actual transaction," sources working for investment banks on the Romanian market told Ziarul Financiar.
adrian.mirsanu@zf.ro
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