* "SMH Smith Hodgkinson" has revalued the assets that Oltchim acquired from "Petrom" at 89.5 million Euros
The shareholders of "Oltchim" have reasons to rejoice just six months after it acquired the Arpechim" petrochemical division from "Petrom". The company "SHM Smith Hodkinson" has revalued the assets of "Arpechim" at 89.5 million Euros, which means it is currently valued at about 7 times the price paid for it by "Oltchim" in December 2009.
According to its officials, at the time, "Oltchim" bought the petrochemical division of "Arpechim", for 13 million Euros.
Also acquired along with the Petrochemical division were its hydrocarbon inventories, as well as the investments made by "Petrom".
Shareholders of "Oltchim" have approved the results of the revaluation in last week"s General Shareholders" Assembly, and the value of almost EUR 90 million will be recorded in the company"s financial statements.
Which now allows "Oltchim" to borrow more. Besides, based on the revaluation, the management of "Oltchim" has already hypothecated some of the assets it acquired from "Petrom" and wants to do the same with the rest of them to secure working capital.
Alexandru Bucşă, the general deputy manager of "Oltchim", explained for BURSA, how this revaluation came to this result: "SMH Smith Hodgkinson has the greatest expertise in Romania when it comes to appraising this kind of assets (refineries, petrochemical installations), and they performed the evaluation of the most important assets of Petrom/OMV, Rompetrol, Rafo, etc. You have to understand it is one thing to evaluate an asset that will be sold off as scrap metal and it"s completely another to evaluate the assets which are part of an integrated business such as Oltchim. SMH did the evaluation knowing that we want to use the assets right away in the production process, not to let them go
