German company PCC SE and investment fund Carlson Ventures International, which together own 31.3 percent of Romanian majority state-owned company Oltchim (symbol OLT) have signed an agreement to cast similar votes and follow the same strategy for the company, the two companies have announced. The two, which are the biggest minority shareholders in Oltchim, will also participate together in the Oltchim privatization process, once it will start. PCC and Carslon Ventures International will act concertedly in what concerns Oltchim, having already notified the Bucharest Stock Exchange (BVB), where Oltchim's shares are traded.

This will allow PCC to pursue its business plan for Oltchim, after having tried for years to impose its ideas, that were rejected by the company's management. Carlson has decided to support PCC's strategy and business plan for Oltchim.

Carlson Ventures International bought 14 percent in Oltchim earlier  this year through Nachbar Services.

PCC and Carlson now call for an urgent restructuring within the company. Based on Carlson's experience, which has been investing in companies in difficulty, the only viable option for Oltchim is a rapid and profound restructuring, according to the company. “Following its purchase of a stake in the company, Carlson Ventures representatives have the Oltchim management. After these meetings, Carlson believes the Oltchim management has no real restructuring plan for the company,” reads the company's statemented.

Despite Oltchim's financial struggle, the company's management focuses on buying used assets, such as the Pitesti refinery, which was closed down by OMV, according to Carlson. The entire Olthim management strategy, which aims at entering the oil refining business and investing huge amounts into an installation which has been closed down, which leads to increasing debts, is irresponsible and unrealistic, the statement goes on.

PCC's option focuses on Olthim's products which can generate profit, as well as on greenfield projects, which will increase the company's competitivity, according to the two shareholders.

“PPC’s main objective is a successful participation in the privatization of Oltchim and purchasing the majority stake held by the Romanian Ministry of Economy, following an open and transparent process of privatization”, Wojciech Zaremba, PCC’s representative in Romania, has previously said.

Oltchim holds debts of over EUR 550 million. Romania has pledged to privatize Oltchim chemicals producer at the request of the International Monetary Fund. The main shareholder in Oltchim is the Romanian state, with 54.8 percent of the shares.

Olthim currently has a market capitalization of EUR 97.9 million based on today's exchange rate of RON 4.2635 for an EUR. Its share closing price on Monday was of RON 1.217 on the Bucharest Stock Exchange.

Corina Saceanu, corina@romania-insider.com