SNAM has the rights to most of Romania’s mineral water sources and cashes in royalties from bottlers on behalf of the state, while its 22 percent holding in Automobile Craiova is one of SIF Oltenia’s most important, especially in light of the potential for growth the company since Ford became a shareholder.
“The contract of the sale of the majority share package to Ford includes a clause that stipulates that AVAS will attempt to buy back the shares owned by minority shareholders or exchange these for ownership thereof. We have held talks with representatives of AVAS on this exchange, and companies we want include the National Company of Mineral Waters,” according to a statement for Business Standard by Tudor Ciurezu, Deputy General Manager of SIF Oltenia.
In exchange of shares SIF Oltenia has in Automobile Craiova, the investment company would receive the entire share package of SNAM.
The Romanian Mineral Waters Employer’s Union (APEMIN) and the Romanian Association for Mineral Waters have sent an open letter to several institutions, including Romania’s President, in which they charge that this exchange of shares is an operation that will lead the state to lose a significant budget resource, and to a private entity becoming a state monopoly.
SIF Oltenia to trade in automotive shares for “mineral water” package
Publicat la 13.05.2008, 21:00:00
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