The European Bank for Reconstruction and Development (EBRD) has sold 20 percent of its shares in Austrian owned OMV Petrom at slightly below the share closing price yesterday (November 27 ). The EBRD sold just shy of 230 million shares in the Bucharest Stock Exchange listed company Petrom, which was privatized in 2004 when OMV bought a controlling stake in the company.

The shares sold for RON 0.395 each, which valued the deal at RON 90.7 million, or around EUR 20.1 million at today's rate. Raiffeisen Capital & Investment S.A. and Wood & Co. acted as joint bookrunners on the placement, which carries a 90-day lock-up, meaning the buyer - which was not mentioned - will not be able to sell the shares for three months.

Representatives of both OMV Petrom and the EBRD herald the sale as a mark of Petrom's success as a privatized company and a reflection of strong institutional demand in the company's stock. “Our partial exit from Petrom comes as Romania’s attractiveness to institutional investors has grown. We are proud to have contributed to making Petrom the successful, strong and attractive company it is today,” said EBRD Natural Resources Director Kevin Bortz.

The EBRD bought a 2.03 percent stake in Petrom in 2004 to support the privatization process for the then state owned oil and gas company. Later in the same year, Austrian OMV purchased a 51.01 percent controlling stake in Petrom.

Petrom CEO Mariana Gheorghe described Petrom's cooperation with the EBRD over the years as “excellent,” saying following the announcement of the sale, “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 Romanian state wanted to sell part of its stake in Petrom earlier this year in a secondary listing on the Bucharest Stock Exchange, but the process failed as the interest was low.

Liam Lever, liam@romania-insider.com 

(photo source: Arhivafoto.ro)