The EBRD has sold its 1.6 per cent equity stake in Petrom, a leading company in the oil and gas sector based in Romania, and which is listed on the Bucharest Stock Exchange. The sale represented the remainder of the Bank’s holding, with the EBRD having exited partially from its holding in November 2012.
The exit price per share represented a small discount to yesterday’s closing price of RON 0.4511 on the Bucharest Stock Exchange. Raiffeisen Capital & Investment S.A. and Wood & Company acted as joint book runners on the placement.
The EBRD became a shareholder of Petrom in 2004 to support the privatisation of the state-owned national integrated oil and gas company, with a holding of approximately 2.03 per cent. This represented part of an effort to provide institutional strength to the company and to help promote its growth. By July 2004 Austria’s OMV AG had purchased a controlling stake of 51.01 per cent.
Eric Rasmussen, EBRD’s Director, Natural Resources, said: “Our exit from Petrom is proof of Romania’s attractiveness to institutional investors. We are proud to have contributed to making Petrom the successful, strong and attractive company it is today.” This exit forms part of the EBRD’s ongoing portfolio management, and the Bank remains fully committed to Romania.
Mariana Gheorghe, CEO of Petrom, said: “We are pleased with the ongoing excellent cooperation with the EBRD, a premier financial institution which remains an important partner of the company. We highly appreciate the support from the EBRD during the complex and successful transformation process of Petrom into a modern and sustainable company, including during the first years of the financial crisis. The success of this sale reflects strong investor demand for Petrom shares and support for management’s business strategy. This transaction will also positively contribute to Romanian capital market development by increasing liquidity on the Bucharest Stock Exchange.”