SIF "Oltenia" makes its exit from "Oltchim"

• The shares of OLT have gained 116%, since the beginning of the year

SIF "Oltenia" yesterday liquidated its stake of about 6.4% held "Oltchim" Râmnicu Vâlcea (OLT), in exchange for approximately 2.4 million Euros. In total, 8.8% of the share capital of the chemical plant exchanged owners yesterday on the Deal market, worth 13.59 million lei (3.31 million Euros).

Yesterday"s special transactions took place as the shares of "Oltchim" have gained about 116% since the beginning of the year, reaching a high of 0.472 lei/share. The evolution of the shares of OLT is also due to the fact that the Government announced on February 22nd, that it has begun the proceedings for the privatization of the plant, with the consulting services for the privatization of the company to be acquired later this year. The Ministry of the Economy, the majority shareholder of "Oltchim", said that the company would be put up for privatization, in the first half of 2012, according to a draft letter of intention drawn up after the discussions between the representatives of the Government and the representatives of the joint mission of the International Monetary Fund, the World Bank and the European Commission.

"This was the best moment for us to make our exit from Oltchim", said, for BURSA, Tudor Ciurezu, the deputy managing director of SIF "Oltenia", who added: "We held about 6.4% of OLT, but we decided to sell our stake, as over the past few years, Oltchim"s results were not up to our expectations. We have a profit of about 50% on this deal. We will use the money we made on this deal to invest in other liquid and stable companies".

The representatives of PCC SE yesterday denied that they were the buyers of the 30 million shares of OLT sold on the Deal market, adding that they are interested in the purchasing of the majority stake from the state, following the privatization. PCC SE currently holds 12.15% of the shares of OLT.

"Oltchim" has a market capitalization of 157.7 million lei, according to the price of 0.45 lei/share seen in yesterday"s trading session. In the first nine months of 2010, the company posted losses of 178.19 million lei. At the end of September 2010, the company"s debts amounted to 2.19 billion lei.