April 29 (SeeNews) - Romania's economy minister Florin Spataru said that local salt producer Salrom will be listed on the Bucharest Stock Exchange in May 2023, as one of its shareholders, investment fund Fondul Proprietatea [BSE:FP], has decided to exit the company.
"In May next year, Salrom will be listed on the Stock Exchange. Fondul Proprietatea wishes to leave the company's shareholding and will sell its shares on the stock exchange. They have come up with a plan for such a transaction which, according to our estimates, will be completed in the first half of next year," Spataru said in a televised statement on Thursday during a visit at one of Salrom's salt mines in southern Romania, Slanic Prahova.
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According to Spataru, the economy ministry, which is Salrom's majority shareholder has signed an agreement in principle with Fondul Proprietatea for the listing.
Under next year's investment plan, a new elevator and a single point salt cutting machine at the Slanic Prahova salt mine. Moreover, the salt grinding and packaging plant there will also be upgraded.
"These investments are needed to increase production capacity and safely extract salt. Salrom must become an important competitor on the Romanian food market, especially since salt deposits are of high quality, and the properties of salt in our country are much better compared to those of imported products that we find on store shelves," Spataru added.
In July, centre-right opposition USR MP Claudiu Nasui, then minister of economy, said that the ministry has approved listing procedures for Salrom and that the company will also expand into graphite mining. At the time, the ministry said that the procedures are expected to take at least a year to complete.
Salrom, Romania's sole edible salt producer, was founded in 1997 by reorganising the former Regia Autonoma a Sarii Bucuresti in seven branches in the country. Its main products are rock salt solution, recrystallized salt and limestone. It employs some 1,500 in seven subsidiaries and production centres: Slanic Prahova, Ocna Mures, Praid, Ocna Dej, Ramnicu Valcea, Targu Ocna and Cacica.
Salrom's net profit soared to 22.2 million lei ($2.8 million/ 2.33 million euro) in the first half of 2021, compared to 4.1 million lei in the like period of 2020, latest data posted on its website showed. Also, operational revenues rose by an annual 26% in the first half to 161.2 million lei.
In 2020, Salrom's net profit plummeted to 11.5 million lei ($2.45 million/ 2.32 million euro) compared to 77 million lei in 2019, while revenues fell 37% on the year to 300 million lei.
The economy ministry owns 51% of Salrom and 49% is controlled by property investment fund Fondul Proprietatea.
(1 euro=4.9475 lei)