PCC and "Fortissimo Capital" join their forces for the privatization of "Oltchim"

PCC SE, the minority shareholder of "Oltchim", and Israeli investment fund "Fortissimo Capital" will form a consortium for the privatization of the plant of Vâlcea.

Wojciech Zaremba, the representative of PCC SE in Romania, told us: "We have been involved in the Oltchim case for seven years, we have participated in the privatization process last autumn, and we are now taking part in the second attempt to privatize the company. One month ago we have submitted our letter of intention, we have said that PCC is interested in fully buying Oltchim, and today (ed. note: yesterday) we have joined forces with investment fund < Fortissimo Capital > and together we have submitted a letter of intention, through which we are announcing our intention to buy Oltchim".

"Fortissimo Capital" is a private investment fund which has begun the talks with the representatives of the plant, concerning the privatization, this spring.

The fund has assets of half a billion dollars and mostly invests in public and private Israeli companies in the technology and industry sector, which need capital injections to develop their business.

Wojciech Zaremba had the following to say to us about the association with the Israeli fund: "It is a good combination, between a strategic investor and an investment fund. Thus, we can ensure the necessary funding for Oltchim. We know the industry, the market, very well, so we are certain that we won't have any problems in rebuilding the commercial network, the production.

I think that this association will be very useful to the company and can lead to its development".

According to Mr. Zaremba, PCC and "Fortissimo" will submit all the necessary documentation, letters of recommendation from the business partners and also from banks.

"I don't want to speak for < Fortissimo >, but I can tell you about the references that PCC has", Wojciech Zaremba told us, and he went on to say: "We have letters of recommendation from Commerzbank and from Raiffeisen Bank, two banks that are very reliable, and also from our partners Inoes, one of the biggest companies in the chemical sector, and PKN Orlen, the biggest company in Poland".

Oltchim has been in insolvency since the beginning of the year, after, in September 2012, the attempt to privatize it failed.

The main shareholders of Oltchim are the Ministry of the Economy, with a stake of 54.8% of the shares and PCC, with a stake of approximately 33% of the shares.