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Privatization procedure for Cupru Min set to continue, in compliance with current laws
The Ministry of Economy, Trade and Business Milieu will continue the privatization procedure for Cupru Min company, in compliance with the current law, according to a release sent by the Ministry.
The representatives of the Office of State Ownership and Privatization in Industry (OPSPI) met those of Roman Copper company on Tuesday, following the request of the Canadian company made to the government last week.
'In the spirit of transparency and openness shown all over the privatization process of the Cupru Min company, the Ministry of Economy, Trade and Business Milieu together with the Office of State Ownership and Privatization in Industry, announce that a meeting took place today, February 17 at the OPSPI headquarters between the representatives of Roman Copper company and those of the ministry and the office. The meeting took place at the public request of Roman Copper company made to the government last week. MECMA, through the agency of OPSPI, will continue the privatiation procedure of Cupru Min company, in compliance with the current laws. Cupru Min management took the first steps to acquire the authorization of environment and the authorization to continue its activity, as the short-term goal of MECMA is to provide jobs at Rosia Poieni,' reads the MECMA release.
The Romanian state negotiated with the Canadian company Cupru Min privatization through OPSPI, whose director, Florin Vladan, said that the negotiation manner was 'unprofessional.'
On March 26, Roman Copper Corporation of Canada was declared the winner of the tender offer held to sell the stock belonging to the state at Cupru Min Abrud company, for the price of 200.772 million euros. The starting price was 57.363 million euros.
According to the Ministry of Economy, Trade and Business Milieu, three bidders took part in the tender, namely OZ Minerals Limited Australia, Dundee Holding BV of the Netherlands and Roman Copper Corporation of Canada.
The privatization strategy of Cupru Min Abrud company was approved through a government resolution and the privatization was included in the commitment pledged within the letter of intent of the stand-by precautionary agreement signed between Romania and the International Monetary Fund, whose deadline was late April 2012.
Valhalla Resources - the mystery investor interested in Romanian company Cupru Min
A tender for the privatization of Romanian company Cupru Min has been won officially by Canadian company Roman Copper Inc., but the whole process came to a standstill over the past several days, with Roman Copper saying it was trying to push for a deal despite the Romanian government pulling out of negotiations. But who is behind Roman Copper, about which it was only known that investment bank Bayfront Capital Partners was among its founders? According to HotNews.ro sources, Roman Copper covers another Canadian company founded by a US citizen and a Canadian citizen living in Romania since the nineties.
The company is Valhalla Resources, founded by Stacy Quinney and Joel Hayes. Quinney was reported in the past to have had business connections with Romanian oil, real estate and media mogul Dinu Patriciu. Valhalla Resources is listed at the Toronto exchange and runs natural resources projects in Romania and Turkey.
Contacted by HotNews.ro, Stacy Quinney would only say it was "too sensitive a subject" he couldn't comment.According to HotNews.ro sources, Roman Copper Inc., the winner of the Cupru Min tender, is an SPV formed of Bayfront Capital Partners and Valhalla Resources. A Bayfront spokesperson said the investment bank was the sole shareholder in Roman Copper.Shortly after HotNews.ro published this report in its Romanian-language version on Tuesday, a Roman Copper representative who had initially denied the involvement of Valhalla in the company announced that Joel Hayes and Stacy Quinney, the founders with executive powers in Valhalla, were named in the top management of Roman Copper. Joel Hayes became President and Stacy Quinney - executive vice-president of Roman Copper, while Michael Williams - who also serves as president at Valhalla Resources - was named head of the Roman Copper board.
Valhalla Resources was one of the companies who had shown interest in attending the Cupru Min privatization. Romanian newspaper Adevarul reported in November 2011 that Valhalla Resources had bought the tender book. Eventually, Valhalla Resources did not take part in the tender on March 26 this year. The government announced the winner - Roman Copper Inc, but did not say who the shareholders of the company were. The Government led by Mihai Razvan Ungureanu announced Friday, April 6 that it would not sign the contract with Roman contract because the company failed to meet three essential terms.
Stacy Quinney is also known as the American character in an advertising campaign for a Romanian-made sweet bar, Rom. The campaign was awarded several major trophies at the Cannes advertising festival last year.