BUCHAREST (Romania), December 18 (SeeNews) – Romanian oil and gas group OMV Petrom said on Friday it has sold the petrochemical assets of its Arpechim refinery to state-owned chemicals company Oltchim for 13 million euro ($18.7 million).
"The transaction includes the payment of fixed assets, hydrocarbons stocks and other current assets related to these activities," OMV Petrom said in a statement. It also includes a restructuring of Oltchim's 112.4 million lei ($38.5 million/26.7 million euro) debt to OMV Petrom, which will be paid over a three-year period.
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The transaction is pending approval by the Romanian authorities, which is expected at the beginning of next year.
The transfer of these assets is based on OMV Petrom's management decision to focus on its core operations, the group said. The approximately 560 employees of Arpechim’s petrochemical activities will be transferred to Oltchim.
“The integration of Oltchim with the petrochemicals activity from Arpechim is the unique chance to restore the petrochemicals activity in Romania. This transaction will lead to the increase of Oltchim’s market capitalization with direct benefits for our shareholders and will create new working places for Arges and Valcea counties,” Oltchim’s general manager, Constantin Roibu, said in the statement.
OMV Petrom’s stock, part of the blue-chip index of the Bucharest Stock Exchange, BVB, closed 1.97% up at 0.259 lei on Friday.
Oltchim shares traded 5.47% up at 0.27 lei by 0841 GMT on the BVB on Friday before they were suspended from trading due to the expected announcement of the transaction.
(1 euro = 4.2022 Romanian lei)