COMMISSION DECISION
of 7 March 2012
on State aid No SA.29041 (C 28/2009, ex N 433/2009) Support measures in favour of Oltchim SA Râmnicu Vâlcea
(notified under document C(2012) 1369)
(Only the Romanian text is authentic)
(Text with EEA relevance)
(2013/246/EU)
I.
PROCEDURE
II.
BACKGROUND TO THE CASE
II.1.
The company
II.2.
Events prior to Romania's Accession to the EU
II.2.1.
The origin of the public debt
II.2.2.
The 2003 debt conversion
II.2.3.
Further accumulated debt
II.3.
Events after Romania's accession to the EU
II.3.1.
Evolution of the debt
II.3.2.
The second debt conversion
II.4.
Oltchim's current situation
III.
THE OPENING DECISION
IV.
ROMANIA'S COMMENTS ON THE OPENING DECISION
V.
COMMENTS FROM INTERESTED PARTIES
VI.
ROMANIA'S COMMENTS ON THE OBSERVATIONS OF INTERESTED PARTIES
VII.
WITHDRAWAL OF THE NOTIFICATION WITH RESPECT TO THE STATE GUARANTEE (MEASURE 2)
VIII.
ROMANIA'S POSITION AFTER THE WITHDRAWAL OF MEASURE 2
VIII.1.
Modification of measure 1 - Romania's intention to privatise
VIII.2.
Developments regarding measure 3 - the interest agreement
|
2007 |
2008 |
2009 |
2010 |
2011 |
Applicable interest rate |
1.1-30.6 -> 11,17 % 1.7-31.12 -> 10,24 % |
14,86 % |
18,85 % |
14,00 % |
13,22 % |
Interest amount (rounded to RON million) |
58 |
87 |
129 |
114 |
123 |
Total interest on AVAS debt since 2007: RON 511 million |
VIII.3.
Romania's arguments in view of the privatisation intention
IX.
ASSESSMENT
IX.1.
General
IX.2.
Competence of the Commission prior to accession
IX.3.
Existence of aid: Advantage
IX.3.1.
The private creditor test
IX.3.2.
Recovery of the public debt – Assessment of measure 3
IX.3.3.
The debt conversion – measure 1
|
Claim (million EUR) |
Collection total (million EUR) |
Collection NPV at 10,7 % (million EUR) |
AVAS (Creditor) |
209,4 |
[20]-[30] |
[10]-[30] |
Ministry of Economy (shareholder) |
Shareholding |
[0]-[10] |
[0]-[10] |
State total |
|
[20]-[30] |
[10]-[30] |
Figure 1
Oltchim's share price development on the Bucharest Stock Exchange 23.2.2011-23.2.2012
Period |
Number of shares |
Average share price |
Market capitalisation (share price x number of shares) |
Net debt in RON thou |
Enterprise value (market capitalisation plus net debt) in RON thou |
Enterprise value per share |
Jan. -08 |
343 023 858 |
1,10 |
378 |
[1 200]-[1 400] |
[1 700]-[1 800] |
[4]-[6] |
Feb. -08 |
343 023 858 |
0,91 |
314 |
[1 200]-[1 400] |
[1 600]-[1 700] |
[4]-[6] |
Mar. -08 |
343 023 858 |
0,81 |
279 |
[1 200]-[1 400] |
[1 600]-[1 700] |
[4]-[6] |
Apr. -08 |
343 023 858 |
0,87 |
300 |
[1 200]-[1 400] |
[1 600]-[1 700] |
[4]-[6] |
May -08 |
343 023 858 |
1,04 |
358 |
[1 300]-[1 500] |
[1 700]-[1 800] |
[4]-[6] |
Jun. -08 |
343 023 858 |
0,96 |
330 |
[1 300]-[1 500] |
[1 700]-[1 800] |
[4]-[6] |
Jul. -08 |
343 023 858 |
0,72 |
247 |
[1 300]-[1 500] |
[1 600]-[1 700] |
[4]-[6] |
Aug. -08 |
343 023 858 |
0,63 |
216 |
[1 300]-[1 500] |
[1 600]-[1 700] |
[4]-[6] |
Sep. -08 |
343 023 858 |
0,47 |
160 |
[1 300]-[1 500] |
[1 500]-[1 600] |
[4]-[6] |
Oct. -08 |
343 023 858 |
0,37 |
127 |
[1 300]-[1 500] |
[1 500]-[1 600] |
[4]-[6] |
Nov. -08 |
343 023 858 |
0,21 |
71 |
[1 200]-[1 400] |
]1 400]-[1 500] |
[4]-[6] |
Dec. 08 |
343 023 858 |
0,16 |
54 |
[1 400]-[1 600] |
[1 400]-[1 500] |
[4]-[6] |
Jan. -09 |
343 023 858 |
0,15 |
51 |
[1 400]-[1 600] |
[1 600]-[1 700] |
[4]-[6] |
Feb. -09 |
343 023 858 |
0,13 |
45 |
[1 400]-[1 600] |
[1 600]-[1 700] |
[4]-[6] |
Mar. -09 |
343 023 858 |
0,15 |
53 |
[1 400]-[1 600] |
[1 600]-[1 700] |
[4]-[6] |
Apr. -09 |
343 023 858 |
0,25 |
84 |
[1 400]-[1 600] |
[1 600]-[1 700] |
[4]-[6] |
May -09 |
343 023 858 |
0,27 |
93 |
[1 400]-[1 600] |
[1 600]-[1 700] |
[4]-[6] |
Jun. -09 |
343 023 858 |
0,30 |
104 |
[1 400]-[1 600] |
[1 700]-[1 800] |
[4]-[6] |
Jul -09 |
343 023 858 |
0,33 |
113 |
[1 400]-[1 600] |
[1 700]-[1 800] |
[4]-[6] |
Aug. -09 |
343 023 858 |
0,32 |
109 |
[1 600]-[1 800] |
[1 700]-[1 800] |
[4]-[6] |
Sep. -09 |
343 023 858 |
0,28 |
96 |
[1 600]-[1 800] |
[1 700]-[1 800] |
[4]-[6] |
Oct. -09 |
343 023 858 |
0,27 |
91 |
[1 600]-[1 800] |
[1 700]-[1 800] |
[4]-[6] |
Nov. -09 |
343 023 858 |
0,23 |
79 |
[1 600]-[1 800] |
[1 700]-[1 800] |
[4]-[6] |
Dec. -09 |
343 023 858 |
0,26 |
89 |
[1 600]-[1 800] |
[1 700]-[1 800] |
[4]-[6] |
Jan. -10 |
343 023 858 |
0,23 |
79 |
[1 600]-[1 800] |
[1 700]-[1 800] |
[4]-[6] |
Feb. -10 |
343 023 858 |
0,22 |
77 |
[1 600]-[1 800] |
[1 700]-[1 800] |
[4]-[6] |
Mar. -10 |
343 023 858 |
0,27 |
92 |
[1 600]-[1 800] |
[1 700]-[1 800] |
[4]-[6] |
Apr. -10 |
343 023 858 |
0,31 |
105 |
[1 600]-[1 800] |
[1 800]-[1 900] |
[4]-[6] |
May -10 |
343 023 858 |
0,22 |
76 |
[1 600]-[1 800] |
[1 800]-[1 900] |
[4]-[6] |
Jun. -10 |
343 023 858 |
0,21 |
71 |
[1 700]-[1 900] |
[1 900]-[2 000] |
[4]-[6] |
Jul. -10 |
343 023 858 |
0,18 |
62 |
[1 700]-[1 900] |
[1 900]-[2 000] |
[4]-[6] |
Aug. -10 |
343 023 858 |
0,19 |
64 |
[1 700]-[1 900] |
[1 900]-[2 000] |
[4]-[6] |
Apr. -10 |
343 023 858 |
0,19 |
66 |
[1 700]-[1 900] |
[1 900]-[2 000] |
[4]-[6] |
Oct. -10 |
343 023 858 |
0,22 |
76 |
[1 700]-[1 900] |
[1 900]-[2 000] |
[4]-[6] |
Nov. -10 |
343 023 858 |
0,22 |
75 |
[1 800]-[2 000] |
[2 000]-[2 100] |
[4]-[6] |
Dec. -10 |
343 023 858 |
0,20 |
69 |
[1 800]-[2 000] |
[2 000]-[2 100] |
[5]-[7] |
Ian. -11 |
343 023 858 |
0,21 |
74 |
[1 800]-[2 000] |
[2 000]-[2 100] |
[5]-[7] |
Feb. -11 |
343 023 858 |
0,26 |
88 |
[1 800]-[2 000] |
[2 000]-[2 100] |
[5]-[7] |
Mar. -11 |
343 023 858 |
0,30 |
102 |
[1 800]-[2 000] |
[2 000]-[2 100] |
[5]-[7] |
Apr. -11 |
343 023 858 |
0,44 |
152 |
[2 000]-[2 200] |
[2 100]-[2 200] |
[5]-[7] |
May -11 |
343 211 383 |
0,77 |
265 |
[2 000]-[2 200] |
[2 300]-[2 400] |
[5]-[7] |
Jun. -11 |
343 211 383 |
1,61 |
551 |
[2 000]-[2 200] |
[2 600]-[2 700] |
[6]-[8] |
Jul. -11 |
343 211 383 |
2,05 |
702 |
[2 000]-[2 200] |
[2 800]-[2 900] |
[6]-[8] |
Aug. -11 |
343 211 383 |
1,32 |
452 |
[2 000]-[2 200] |
[2 600]-[2 700] |
[6]-[8] |
|
Share price |
Enterprise value per share |
Median |
[0,10]-[0,30] |
[4]-[6] |
Average |
[0,30]-[0,50] |
[4]-[6] |
Weighted average |
[0,40]-[0,60] |
[4]-[6] |
Calculation of the market value of total equity after the debt conversion |
Scenarios |
||
|
EV based on 44 months’ median share price |
EV based on 44 months’ average share price |
EV based on 44 months’ weighted average share price |
EV/share (RON) |
[4]-[6] |
[4]-[6] |
[4]-[6] |
Number of shares before conversion |
343 211 383 |
343 211 383 |
343 211 383 |
Enterprise value (RON million) |
[1 700]-[1 800] |
[1 800]-[1 900] |
[2 000]-[2 100] |
Net debt after debt conversion (RON million) |
[1 600]-[1 700] |
[1 600]-[1 700] |
[1 600]-[1 700] |
Market value of equity (RON million) |
[100]-[200] |
[200]-[300] |
[400]-[500] |
Market value of equity (EUR million) |
[20]-[30] |
[50]-[60] |
[90]-[100] |
|
Shareholding before debt conversion |
Shareholding after debt conversion AVAS debt plus interest thereon is debt converted |
AVAS |
0 % |
[80]-[100]% |
Ministry of Economy |
54,81 % |
[0]-[5]% |
State total |
54,81 % |
[80]-[100]% |
State's expected revenue EUR million |
Debt conversion and immediate privatisation |
Net present value of the revenues obtained through liquidation |
Comparison |
||
|
EV based on 44 months’ median share price |
EV based on 44 months’ average share price |
EV based on 44 months’ weighted average share price |
|
|
Market value of equity |
[20]-[30] |
[45]-[60] |
[90]-[100] |
|
|
Market value of combined public stake |
[15]-[40] |
[45]-[60] |
[80]-[100] |
|
|
Net present value of combined public stake (98,44 %) |
[15]-[40] |
[30]-[50] |
[75]-[90] |
[10]-[40] |
Liquidation < Debt conversion and privatisation |
Net present value of AVAS stake (96,54 %) |
[15]-[40] |
[30]-[50] |
[70]-[80] |
[10]-[40] |
Liquidation < Debt conversion and privatisation |
Net present value of Ministry of Economy stake (1,9 %) |
[0]-[1] |
[0]-[1] |
[1]-[2] |
[0]-[1] |
Liquidation < Debt conversion and privatisation |