Sunday, February 10, 2013
Albania Cancels Vetro Oil Offer
Albania has nullified the winning bid by Vetro Energy to buy out Albepetrol. The winning bid was worth 850 million euros, or $1.1 billion. The reason for the nullification was because Vetro wasn't able to pay its initial payment of 170 million euros. The agreed price could have significantly helped Albania slash their deficit and public debt. Next in line was the Chinese consortium, Win Business, who had an offer of 298 million euros. The Albanian government has offered to sell all of Albpetrol's above-ground assets. One of Albepetrol's biggest shareholders, Rezart Taci, was shocked about the announcement, saying that the deal was close to being finalized.
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I was going to post abut this, but you beat me to the punch ha. Anyway, I was really surprised by this because this is such a bold move by Albania. They're not messing around - the 20% was close to the second best bid which was by Win Business. I'm curious to see if anything else will come out of this in the next couple of weeks.
ReplyDeleteI read this article as well, it was definitely interesting how significant this was in possibly helping Albania's deficit and public debt. For us going to NATO this week, this will be something that we should keep in mind. Seeing as Albania has quite a bit going on with fuel types.
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