Romania fails to sell minority stake in Petrom

Romania has delayed selling its minority stake in oil group OMV Petrom after failing to receive enough competitive bids during a two-week offer period which closed on 22 July.

The country currently holds a 20.6 per cent stake in the company and is trying to sell 9.8 per cent. The Romanian government had hoped to raise the equivalent of 500 million euros through the sale.

However, investors were reluctant to bid, with the subscription rate being below the 80 per cent required to close the offer. Romania’s economic ministry says it will now have to set a new timetable, depending on market conditions.

It is thought the bidders may have been put off by the ongoing euro debt crisis, while insufficient promotion of the offer may also have been to blame.

Romania, which is increasingly reliant on foreign borrowing to finance investment plans, also hopes to sell a minority stake in gas producer Romgaz through the stock exchange later this year, although the company is not yet listed. The government also wants to complete the sale of minority stakes in utilities companies Transgaz SA and Transelectrica SA by 2012 to raise much needed funds for the state budget.

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