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Securities regulators probe surge in Rompetrol shares before sale announcement

Securities regulators probe surge in Rompetrol shares before sale announcement

Romanian securities regulators said they are investigating a surge in Rompetrol Rafinare SA shares less than an hour before an announcement by the stock exchange that the refiner's parent company had a new majority owner.
Rompetrol shares rose by 14.3 percent, just under the maximum allowed for one day, before investors informed the exchange that 75 percent of Rompetrol Group had been bought by Kazakhstan state company KazMunaiGaz.
The deal, signed Friday in the Kazakh city of Almaty, will double the Kazakh company's refinery capacity and give it 630 gas stations in seven countries including Romania, Georgia, Bulgaria, Spain, Moldova and France _ boosting its presence within the EU.
Rompetrol did not give a sale figure, but the oil company _ Romania's second largest and a major regional energy player _ is worth US$3.6 billion (euro2.63 billion) _ suggesting the price of the deal was around US$2.7 billion (euro1.98 billion).
"The shares rose in an extremely short time, only 20 minutes, to the level in which trading is automatically suspended," the National Securities Commission said in a statement late Tuesday. The commission "has been asked by capital markets and the stock exchange to analyze and identify if the law was disregarded."
Rompetrol has insisted that complied with regulations and notified the Bucharest stock exchange and the securities regulators. In a statement it said that it had notified authorities at 12 p.m., before the share price rose.
The Bucharest stock exchange said Wednesday that it had not received notification of the change in company ownership before it occurred.


Updated : 2021-02-28 17:29 GMT+08:00