"Oltchim" wants to borrow 250 million Euros

"Oltchim" Râmnicu Vâlcea (symbol: OLT) wants to borrow 250 million Euros to finance investments and for working capital, according to the notice to attend the General Shareholder Meeting of August 29th, remitted to the Bucharest Stock Exchange.

100 million Euros would be used for financing the investments already in progress, as well as other investments which would have to be made from hereon in its petrochemical operations, as well as in its platform of Râmnicu Vâlcea, with the remaining amount to be used as working capital.

Shareholders will also decide on the renting of a plot of land of 21,401 square meters located in the Bradu commune, for a period of 15 years to Linde Gas Romania, in order to build a plant of nitrogen-oxygen for supplying thermal gas to the petrochemical unit of Arpechim Piteşti.

The shareholders will also discuss limiting the selling of the company"s products through intermediaries at a maximum of 5%, and selling the remaining output directly to the end users, as well as the sale of the Stejăret Purification Station.

The plant might also decide to stop selling products to companies residing in tax havens, such as Cyprus, Switzerland and the Cayman Islands, without the prior approval of the General Shareholder Meeting.

The shareholders will also discuss the amendment of an article in the articles of incorporation, at the request of the Ministry of the Economy, in order to separate the positions of General Manager and of Chairman of the Board of Directors. Both positions are currently held by Constantin Roibu.

"Oltchim" has a share capital of 34.3 million lei, divided into 343 million shares with a face value of 0.1 lei.

Through the Ministry of the Economy, the Romanian state holds 54.8% of the shares of "Oltchim". According to the latest reports, PCC SE controls directly 17.28%, and Carlson Ventures owns 14.02% of the shares, through Nachbar Services.