Tuesday, May 18, 2010

OMV Petrom Plans to Spin Off Marketing Division in October

By Irina Savu

May 17 (Bloomberg) -- OMV Petrom SA, Romania’s largest oil company, plans to combine and spin off its three marketing units in October.

Petrom, majority-owned by OMV AG, will transfer 7 percent of its total net assets encompassing its retail, commercial and business administration units to OMV Petrom Marketing SRL, the Bucharest-based company said in astatement sent to the Bucharest Stock Exchange. Shareholders will vote on the spin off during an extraordinary meeting yet to be scheduled.

OMV Petrom Marketing, or OPM, will take over assets including Petrom’s 442 filling stations worth 233 million euros ($287 million) and in exchange will issue new shares worth 776 million lei ($228 million), which will be allocated to Petrom. OPM’s share capital will total 980 million lei after the issue, according to the statement.

“The spin off of the marketing activities currently carried out by OMV Petrom followed by the consolidation thereof with the activities carried out by OPM will allow the companies to ensure a better coordination of activities,” the company said in the statement. “Optimization of the organizational structures and the implementation of common standard business processes will bring the companies increased cost efficiency.”

To contact the reporter on this story: Irina Savu in Bucharest atisavu@bloomberg.net.

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