PwC handles Oltchim privatization

Newsroom 13/12/2011 | 11:37

PwC Romania will act as consultant in the preparation stages and the privatization process of Oltchim, a chemical manufacturer. The Romanian Ministry of Economy, Commerce and Business Environment signed the contract with the Big 4 company on December 8th.

Musat & Asociatii law firm was appointed by the Ministry of Economy to select the consultant, and PwC obtained the highest score on criteria mentioned in the specification tasks document.

A consortium of KPMG Romania and White & Case Pachiu also posted an offer for the privatization consultant position. Another consortium formed of Taylor DeJongh and SNR Denton also entered the race for this position.

Oltchim reported losses of EUR 42.7 million in the first nine months of 2011, and has sent 1000 employees in technical unemployment, in the last three months, due to lack of raw materials and working capital. The company is registered on the Bucharest Stock Exchange (BVB) under the OLT symbol.

The Romanian Government agreed in the letter of intent signed with the IMF, this year, that certain state-owned enterprises (SOEs) will be privatised in order to cut losses and make them competitive. A large part of the Romanian State arreras are caused by SOEs.