The procedure for the acquisition of 26.69% stake in Rompetrol Rafinare will begin this month and could extend for a period of 10 months, says Azamat Zhangulov, senior vice president of KMG International, which announced that he has information that the strategy was already approved by the Government.
“The process of selling shares held by the Government, which represents a package of 26.69% of the company administered by the Ministry of Energy through a special agency must meet certain steps … all we know at the moment, things evolve and, from what I heard from the government, the procurement strategy has already been approved and the procedure was initiated, only it will take some time. According to Romanian law, certain provisions must be met, which may take up to ten months, as the ministry told us. We, the company, were ready to take over those shares upon signature of the Memorandum, as we promised the Government that we will buy shares as soon as desired. The whole process was meant to comply with Romanian law on privatizations by public auction, auction that we will have to participate at, ” said Azamat Zhangulov, quoted by Agerpres.
Investment Fund – the next step
He also said that according to the agreement, the establishment of the investment fund acquisition is the next immediate step after acquiring the shares.
“Under the agreement, the investment fund is the next immediate step, after the acquisition of the shares. Thus the acquisition must precede the establishment of the fund. We are holding discussions with the Ministry and the Government to expedite the procedures and to launch the fund earlier, because we are interested and willing to launch fund quickly. But the ministry must take certain steps,” said Zhangulov.
The acquisition strategy has already been approved and the procedure was initiated, only it will take some time, Azamat Zhangulov
Energy Minister Andrei Gerea, said in turn, that the state is prepared to sell its 26% of Rompetrol Rafinare to the Kazakhs, but stressed out that “the procedure will begin” and will be announced by the end of the month.
“We are ready to sell (shares held by the government-no). The procedure will begin. We have an existing memorandum which ends later this month and this procedure with all that it means, will take about ten months. We agreed with the Kazakh company, they know very well this procedure are comfortable including with the term that is needed, it is a legal term to complete all the procedures related to the sale. The Romanian state is determined to put up for sale package of nearly 27%. Procedure lasts ten months. It will be announced by the end of the month, ” said Gerea.
In early April, Zhangulov said that negotiations of KazMunayGas with the Romanian state, regarding Rompetrol Rafinare will end in July, but the payment of the $ 200 million for the 26.6% stake in the refinery cannot be made in 2015, because 6 to 7 months are required to make all the necessary steps after negotiations.