Balkan Petroleum buys another 49% in Rafo

UK-registered company Balkan Petroleum has become the majority shareholder in the Rafo Onesti refinery in a deal that sees it take on a further 48.91% stake in Rafo, together with the obligations of the sellers of the shares under the privatisation contract signed in 2001. The value of the deal was not revealed. Sources close to the transaction, however, say the total value of the two transactions conducted this summer exceeds $100 million. Balkan Petroleum now controls 97.8% in Rafo. The two selling shareholders were Canyon Servicos (Portugal) and Imperial Oil (Romania), which are held by businessman Corneliu Iacubov. The Onesti Refinery was privatised in 2001, when 60% was sold to Canyon Servicos and Imperial Oil for $7.48 million. The consortium later increased its stake to 94.5% by buying shares that resulted from the conversion of budgetary debts to equity. Balkan Petroleum became Rafo's biggest shareholder in October 2003, after acquiring 48.91% in the refinery from Canyon Servicos. ZF