August 24 (SeeNews) - Romanian insolvent chemicals producer Oltchim [BSE:OLT] said on Wednesday it launched an asset sale auction process for all or part of its assets grouped into nine bundles, and that expects to select investors by the end of 2016.
The sale of the company’s assets will be conducted through an open, fair and transparent process, Oltchim said in a press release.
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The selection of the buyer or buyers will be based on the economic value of the offer or offers, it added.
The deadline for the expression of interest is September 30.
Oltchim has been under insolvency procedure since 2013 but in 2015 it posted better-than-expected revenues of 170.2 million euro ($193 million) and adjusted EBITDA of 17.7 million euro.
For 2016, Oltchim expects 176.5 million euro in revenues and a 23.9 million euro EBITDA.
In the first quarter of the year, Oltchim posted a gross profit of 1.3 million euro, after a 846,000 euro loss in the like period a year ago.
"Although it is insolvent, Oltchim's financial situation has improved, which gives us hope for finding an investor and for the sustainable future of the company's economic activities under market conditions. Maintaining industrial activity in the area of Ramnicu Valcea and preserving jobs are a priority for us," economy minister Costin Borc said on Wednesday.
Oltchim has had several unsuccessful sale attempts in the past.
Throughout 2014, it failed two times to receive binding bids for the sale of Oltchim SPV, a special purpose vehicle that comprised its core business.
However, in 2013, it managed to sell its PVC processing unit Romplast for 7.75 million euro to Romanian company Dynamic Selling Group from Galati, Eastern Romania.
In October 2012 Romania unsuccessfully tried to sell its 54.80% stake in the company.
Oltchim is controlled by the Romanian state through the economy ministry with a 54.8% stake. Germany's PCC SE holds 32.3%, while the balance is owned by smaller shareholders. Its share capital stands at 34.3 million lei ($8.7 million/ 7.6 million euro).
Oltchim shares were trading up 1.08% to 0.3740 lei at 0915 CET on Bucharest Stock Exchange, BVB.
($=0.8826 euro)