KMG International is suprised by investigation into Rompetrol Rafinare privatization

Newsroom 10/05/2016 | 10:08

KMG International said it did not know about the issues around the privatization of Rompetrol Rafinare, which is currently investigated by prosecutors, when it took over 75 percent of the Rompetrol Rafinare Group in 2007.

“Rompetrol Rafinare’s privatization took place in 2000, the agreement on the historic debt conversion into bonds being signed in 2003.

Neither KMG nor KMGI have been officially informed of any investigations such as those mentioned in the D.I.I.C.O.T. press release today (referring to 1998-2003 activities) at the time of the Rompetrol Group NV shares acquisition (in 2007),” said the oil company in a statement.

Prosecutors have seized the Petromidia refinery and the network of retail fuel stations belonging controlled by KMG International to cover the EUR 670 million damage that has been computed in this case.

KMG International said it would use all legal mechanisms, both locally and internationally, to protect their investments made since the acquisition.

The oil company added that is has invested USD 4 million in Romania since 2007 and that it currently employs more than 5.000.

“KMG International committed to the Romania state to develop a joint Romanian-Kazakh investment fund, with a capital contribution of 150 million dollars and pursuing total assets of up to $ 1 billion, depending on market conditions. KMG International expects the Romanian Government to take some administrative steps required for setting up the fund’s project entity, while projects worth over $ 300 million have already been identified and are ready to be transferred to the Fund and to be developed in Romania, set to generate a strong positive impact both economically and socially”, added the fund.

The share in Rompetrol Rafinare were suspended from trading on Monday on the Bucharest Stock Exchange. They should be up for trading again starting today.

Ovidiu Posirca

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