Transgaz and Transelectrica want to raise cash on the Bourse at the same time as the state

Transgaz Mediaş (TGN) natural gas transmission company and Transelectrica Bucureşti (TEL) grid company are asking the state to give them the possibility of raising money on the Bourse through public share offerings, in order to carry out their investment plans.

The Economy Ministry plans to sell this year on the Bourse 15% in stock of Transgaz and Transelectrica each, where it controls majority stakes, to raise money for the budget.

The management teams of the two companies are proposing that in parallel with the state's offerings, they should also carry out capital raise operations and sell new shares on the Bourse, to raise money from investors. In the wake of these operations, the state's stake in the two companies would shrink from 73% at present to around 51%.

The sale of new stock is likely to significantly boost the offerings carried out at the two companies and may attract the attention of some bigger investors, interested in acquiring significant stakes.