PVC Group To Join Exall Resources Consortium For Oltchim

Dow Jones Newswires 29mar01

TORONTO -- Exall Resources Ltd. (T.EXL), which won the bidding for the privatization of Oltchim SA in November, expects to complete a final contract to acquire the petrochemical complex by April 25.

As reported March 6, the Romanian privatization minister was cited as saying that the deal could be signed by March 25.

In a press release Thursday, Exall also said PVC Group Plc, based near Manchester, England, agreed to join a consortium to be formed by Exall following the Oltchim privatization.

PVC Group will be an equity participant in the consortium. It will also contribute expertise in the field of PVC, or polyvinyl chloride, marketing and downstream applications.

On March 1, SNC-Lavalin Group Inc. (T.SNC) agreed to join the consortium to provide capital contribution to the privatized company, as well as project management and technical engineering services.

Exall operates and controls the Glimmer gold mine in Matheson, Ont.

Exall, Romania Concludes $160M Deal For Oltchim Plant

DJN 26apr01

BUCHAREST -- Canada's Exall Resources Ltd. (T.EXL) has concluded a $160 million deal with Romanian authorities for the acquisition of a majority stake in state-owned petrochemical complex Oltchim SA (R.OLT), the Romanian privatization agency announced Thursday.

Exall will pay $10 million for a 53.258% stake in Oltchim and pledges to invest another $150 million in the company in next three years.

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Last year, the government approved state guarantees for $215 million in loans for Oltchim to finance modernization works. The privatization agency said Exall won't initiate massive lay-offs and won't use the state guarantees to pay back Oltchim debts.

Exall said earlier that PVC Group PLC and SNC-Lavalin Group Inc. (T.SNC) have agreed to participate in Oltchim's future development.

Oltchim has a share capital of 323.58 billion lei ($1=ROL28,134) and is listed on the first tier of the Bucharest Stock Exchange. The state owns a 53.258% stake, a domestic investment fund holds 7.9%, while the rest is owned by small shareholders and company's managers.

Thursday its shares closed at ROL800, down 3.6% on the day.