BUCHAREST: The sale of a stake in Romania's top oil and gas group Petrom has attracted strong interest, Angelo Morganti, head of equity corporate finance at Renaissance Capital said on Sunday.
Romania is selling 9.8 percent of Petrom in the largest transaction on its capital markets. The offering began on July 11 and will close at 0900 GMT on July 22.
The sale is part of a government plan to raise 2.9 billion lei ($960 million) this year on the Bucharest bourse, according to te terms of agreements with the International Monetary Fund and other lenders. .
Austria's OMV holds a majority in Petrom and the Romanian government has 21 percent.
The sale is being managed by Renaissance Capital, EFG Securities, BT Securities and Romcapital.
"We've seen strong interest from investors," Morganti told a news briefing.
Jittery markets and a high asking price could yet hit the Romanian government's envisaged $840 million sale of the stake and derail its privatisation programme.
"We feel optimistic about the offering, therefore we don't feel external shocks can have an impact," Morganti added.
He said no decision has been taken by Romania on a minimum price for the bidding process.
A maximum price has been set at 0.46 lei per share, compared with Friday's close of 0.3870 lei.
Led by Poland and Russia, emerging Europe countries are seeking to sell state assets to bolster public finances, attract investment and inject foreign expertise into moribund local industries.
Romania has lagged due to the threat of job losses, leaving inefficient assets on its balance sheet, which drains hundred of millions of euros every year.
It has pledged to sell more under its 5 billion euro ($7.1 billion) International Monetary Fund deal.
"Once the Petrom offer is completed, investors will be set up to trade in Romania," Morganti said. "This will put Romania's stock market on the map of institutional investors."
Copyright Reuters, 2011
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