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Southeast Europe
December 14, 2018 www.intellinews.com I Page 18
est are local banks BCR (RON230mn) and Banca Transilvania (RON160mn), and power company Electrica (RON227mn).
The Oltchim deal is a big step for Vuza after two decades of acquisitions. The businessman is 49 years old and his wealth is estimated at €135mn- €138mn, according to Forbes 2017, though it has been valued at up to €175mn by other sources.
The takeover is likely to result in Chimcomplex becoming a stronger company, but the challenges are high as well. The two companies have very similar industrial profiles: both were designed as vertically-integrated chemical platforms supplied with feedstocks from nearby refineries (Arpechim for Oltchim and Rafo for Chimcomplex). They were designed in the 1960s by the communist regime and gradually developed. But the two had different destinies after the fall of communism.
Oltchim remained in the state’s hands with an allegedly corrupt management — creditors
sued former Oltchim CEO Constantin Roibu who headed the company from 1991 to 2007, claiming €500mn was siphoned out of the company, but
they lost in court — as well as a hostile minor-
ity shareholder, German PCC SE, the owner of PCC Rokita of Poland. PCC SE’s stake in Oltchim surged from 4% to 12% in 2007 when the state reversed a capital increase made in 2003 but challenged in court by PCC SE. The court admit- ted PCC’s request to reverse the capital increase in 2005. In 2011, Cyprus-based Nachbar Resourc- es, controlled by Carlson Ventures, bought a 12% stake in Oltchim from SIF Oltenia. PCC SE went on to purchase more Oltchim shares, and in 2013 Nachbar acquired a 32% blocking stake.
In contrast, Chimcomplex was privatised in 2003 to a network of companies controlled by Vuza, an investor who took advantage of the opportunities generated by the privatisation of industrial assets during 1999-2004.
The merger is expected to face significant prob- lems resulting from the different sizes and differ- ent technology used (Oltchim invested heavily de- spite the poor financial discipline). Chimcomplex is much smaller in size (it boasts only a quarter of Oltchim’s total revenues) but more profitable, measured by 2017 financials.
Srbijagas to borrow €70mn for TurkStream, as Bulgarian opposition seeks to halt project
Denitsa Koseva in Sofia
While Serbia is taking steps to begin the construc- tion of its stretch of the second line of the Turkish Stream (TurkStream) pipeline, which will extend the pipeline to Europe, divisions have emerged in its neighbour Bulgaria over the benefits of partici- pating in the project.
Russian natural gas giant Gazprom has determined the itinerary of the second line of the Turkish Stream pipeline will span Bulgaria and Serbia starting from 2020, then go through
Hungary and Slovakia starting from 2021 and the second half of 2022, respectively, as reported by Kommersant daily in November.
Serbia’s gas monopoly Srbijagas will borrow €70mn from five banks to build its stretch of Turkish Stream, eKapija reported. The company has said that Gazprom has already applied to Serbia’s Energy Agency for a permit for the construction of the section.