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Oltchim Asset Sale Auction Process

August 24th, 2016

Bucharest, August 2016 – Oltchim S.A., the largest producer of chemical goods in Romania and a major producer in Central and Eastern Europe has launched an asset sale auction process for all or parts of its assets grouped in bundles. The Company has three main business units accounting for 94% of the sales: propylene oxide / polyols, chlor-alkali and oxo-alcohols. Oltchim has two sites in Romania located in Ramnicu Valcea and in Bradu-Pitesti. It employs 1,936 employees, thereof 1,824 in Ramnicu Valcea and 112 in Bradu-Pitesti.

Oltchim is under insolvency procedure since 2013 and is managed by its Administrators BDO Business Restructuring and Rominsolv. After filing for insolvency, the Company agreed a 36 month reorganization plan. Oltchim is now performing and in 2015 it exceeded its forecasts, by registering € 170.2 mn revenues and € 17.7 mn (10.4%) adjusted EBITDA1.

In 2016, the Company expects revenues and an adjusted EBITDA2 of € 176.5 mn and € 23.9 mn (13.6%) respectively.

1 Adjustments to the EBITDA in 2015 include: 1) loss from petrochemical division Bradu-Pitesti of € 2.9 mn, 2) loss from non-operating units in Ramnicu Valcea of € 2.5 mn, 3) compensatory salaries and related taxes of € 2.4 mn, 4) penalties of € 0.3 mn, 5) fees for advisory services of € 0.5 mn

2 Adjustments to the projected EBITDA in 2016 include: 1) loss from petrochemical division Bradu-Pitesti of € 2.6 mn, 2) loss from non-operating units in Ramnicu Valcea of € 1.0 mn, 3) fees for advisory services of € 1.7 mn

The sale of the company’s assets will be conducted through an open, fair and transparent process. Multiple asset bundles are for sale and interested parties are invited to bid for any, some or all of the asset packages. The selection of the buyer(s) will be based on the economic value of the offer(s).

Parties interested in bidding for Oltchim’s assets are invited to submit a letter with Expression of Interest, containing the following information:

  • Name and address of the interested party and the responsible persons in relation to the Statement of Interest
  • Information on the scope of current business activities
  • Disclosure on the interested parties’ relationship to the Company
  • Name and address of mandated advisers, if any

The deadline for the Expression of Interest is September 30th, 2016.

Oltchim reserves the right to come back with clarification requests in respect to the information submitted by the interested parties and to request further information from the interested parties.

Contact Persons

Dr. Joachim von Hoyningen-Huene
Partner

Tel:     +49 175 265 9438
Email:     Joachim.Hoyningen-Huene@atkearney.com


Emre Kati
Principal

Tel:     +90 530 234 1055
Email:     Emre.Kati@atkearney.com