Rompetrol NV's shareholder board decided that 75% owned Rompetrol Rafinare (RRC RO) would take over the assets of the other refinery in the Rompetrol NV group, Vega Refinery. Purchase price would be EUR 31m
(US$ 43m) as per the decision of the Rompetrol's shareholders' board. According to Rompetrol NV the decision is aimed at full compliance with the new excise regulations on petrol products, namely that RRC
has to own all the assets used for producing oil products subject to excises. The assets subject of the deal are thus not part of the core activities of Vega refinery, but rather assets leased to Petromidia refinery in the past.
It seems to us that RRC would buy only certain assets of Vega Refinery, not the entire company. Since having no information what assets are subject to the deal we cannot comment on the price. We point out, however, that it would be pretty difficult for RRC to pay US$ 43m given its highly stretched balance sheet: the acquisition would push up end-2007 gearing (net debt to equity) to 59% from our originally expected 54%.