Oltchim shares tempt seven investment funds

Seven investment funds are interested in buying shares of state-owned Oltchim Ramnicu Valcea chemical plant, according to the company’s General Manager, Constantin Roibu.

Plant representatives have had discussions with investment funds Fire Bird (U.S.), WestLB Mellon Asset Management (Germany-U.S.), Oaktree Capital (U.S.), East Capital (Sweden), Emeralt Investment (Ireland) and Finasta (Lithuania).

“This was not about a certain package of shares. What is important is that shares be available for sale,” Roibu said.

Oltchim officials recently indicated they would rather privatize the company by selling stock to investment funds than through a strategic investor.

Two lenders – the European Bank for Reconstruction and Development (EBRD) and the International Finance Corporation (IFC) - could also become Oltchim shareholders this year, as they have manifested interest in buying shares in the chemical plant, Oltchim officials said.

Oltchim has a strong modernization plan, with scheduled investments in excess of €1 billion, to be financed with bank loans and investment funds.

The company foresees €2.5 million in net profit this year and €17.4 percent in net earnings in 2009.