CNVM accepts public takeover offer for Rompetrol Well Services (PTR); rejects bid for Rompetrol Rafinare (RRC)

• Capital market watchdog wants the majority shareholder to offer a minimum price of 0.0741 lei/share for RRC, 19% higher than the current bid of the Kazakhs

The National Securities Commission (CNVM) yesterday rejected for the second time the mandatory takeover bid for "Rompetrol Rafinare" (RRC), initiated by KazMunaiGaz through "The Rompetrol Group", after making a similar decision at the end of 2009 and asking the company to revise the bid price for the takeover bid by using the "revenue-based approach".

This time, the market watchdog did not agree to the price of 0.0625 lei/share offered by the Kazakhs, demanding that the price be at least equal to 0.0741 lei/share, namely the equivalent value of the company"s net assets according to the latest financial statement the company submitted to the CNVM. At the price requested by CNVM, the mandatory takeover offer bid for Rompetrol Rafinare could cost the Kazakhs around 95 million Euros. Shares of RRC were trading at 0.0618 lei/share, before they were suspended around noon.

The management of CNVM gave KazMunaiGaz until next Monday to submit the documentation needed for the mandatory takeover bid of RRC with the new minimum price, with trading in RRC being suspended in the interim.

In turn, the market watchdog has approved the documentation for the mandatory takeover bid for Rompetrol Well Services (PTR), at a price of 0.43 lei.

The takeover bid for PTR will take place between February 3rd - February 23rd, and will be intermediated by BRD SocGen.

The mandatory takeover bid of Rompetrol Rafinare incites major interest on the domestic capital market, with nine of the company"s shareholders, which include UDMR senator Verestoy Attila, constantly demanding that KazMunaiGaz offer a fair price for their stock RRC.