The initial investment will be €15 million.
Petro Group Ltd. (TASE:PTGR), controlled by Arkadi Gaydamak through Ameris Holdings Ltd. (TASE:AMRS.B1), is in negotiations to acquire the controlling interest in a Bulgarian company that is building an oil refinery for an initial investment of €15 million. Construction of the refinery is due to be completed soon. The company is also building a biodiesel plant and a facility to purify and use sludge and oil-saturated waste.
Petro Group owns 280 gas stations and convenience stores in the US. This is the first time that the company has shown an interest in the refining side of the fuel industry. Last month, the company called off talks to buy to buy 110 gas stations and convenience stores on the US East Coast for $60 million, plus inventory, through its subsidiary GPM Investments LLC. Petro Group said at the time that it cancelled the negotiations because of financial findings uncovered during a preliminary examination, it cannot be ruled out that the company had decided to channel its resources to new activity rather than expand its current business.
Petro Group’s share has been highly volatile lately. The share rose 60% immediately following Gaydamak’s acquisition of the company in June, but subsequently fell 30%. In the past month, the share has risen 58% to give a market cap of NIS 370 million.
Published by Globes [online], Israel business news - www.globes.co.il - on October 17, 2007
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