September 20 (SeeNews) - Romanian investment fund Fondul Proprietatea [BSE: FP] said it plans to sell a 2.5% stake in oil and gas group OMV Petrom [BSE:SNP].
The fund will offer institutional investors a base deal of 1.454 billion existing shares in OMV Petrom, it said in a filing with the Bucharest Stock Exchange, BVB, late on Tuesday.
Fondul currently holds a 12.6% stake in the company.
In relation to the offering, Goldman Sachs International is acting as sole global coordinator and joint bookrunner. Banca Comerciala Romana, Erste Group and WOOD & Company are acting as joint bookrunners.
Fondul Proprietatea has agreed to a 120 day lock-up period from the pricing of the transaction, subject to waiver with the consent of the bookrunners and subject to certain customary exceptions, it added.
Petrom will not receive any proceeds from the transaction.
In 2016, Fondul Proprietatea sold a 6.4% stake in OMV Petrom for 682 million lei ($178 million/148 million euro) in four separate transactions. Before the sale Fondul Proprietatea owned 19% of OMV Petrom.
OMV Petrom's net profit tripled year-on-year to 1.21 billion lei in the first half of 2017 on the back of increased oil prices, strong refining margins, higher demand for the company's products and strict cost discipline.
Since 2015, Fondul Proprietatea has accelerated the sale of stakes in various companies. At the beginning of September, the fund, a shareholder in majority state-owned Hidroelectrica, said that it is reviewing strategic options regarding its stake in the hydro power producer.
In mid-August, it said it has started procedures for a potential disposal of its ownership interest in Enel Romania and Engie Romania. The fund has been trying to sell these assets since 2012 in an effort to limit the number of unlisted companies in its portfolio.
In July, Romanian power distributor and supplier Electrica [BSE:EL] signed a 752 million lei memorandum of understanding for the buyout of minority stakes in four of its subsidiaries from the fund.
During 2016, the fund also sold its stakes in the Romanian units of German utility E.ON - Distributie and Energie and in natural gas producer Romgaz [BSE:SNG].
In 2015, it disposed of stakes in real estate company Primcom, metal forging company Forsev, market researcher SIFI CJ Agro, Electroconstructia Elco Cluj, and Petrotel Lukoil.
The investment fund's shares traded 0.23% lower at 0.85 lei on the BVB at 0935 CET.
Blue-chip OMV Petrom traded 4.11% lower at 0.4 lei on the BVB at 0940 CET.
(1 euro=4.5990 lei)
E.ON Energie Romania SA (formerly known as E.ON Gaz Romania SA) is among the biggest companies in SEE. You can download our SEE Top 100 ranking
here or subscribe to our free Top 100 newsletter
here