SOF and SIF Transilvania will share Baile Felix

Tourism resort Baile Felix will be split into several smaller companies that will be divided between the State Ownership Fund (SOF) and Transilvania Financial Investment Company (SIF Transilvania) depending on the outcome of negotiations to be held between the two institutions starting this month, according to SOF officials.

The resort's breakup was proposed by representatives of the two institutions as a solution for getting the privatisation process started, as SOF owns 48 percent in Baile Felix stock, and SIF Transilvania almost 35 percent. The rest of stock is held by the company's management (0.014 percent) and by small shareholders, following

the mass privatisation programme.

The first stage of Baile Felix privatisation will consist in negotiations at the level of SOF and SIF Transilvania. The two institutions will conclude a protocol on the compensation of stakes held by the two funds, to the end of creating majority stakes. The second stage consists in splitting the resort into smaller companies, so that the two funds should each own main stakes. So far, no decision has been issued regarding the number or the size of these new companies.

The next stage consists in establishing privatisation methods, by a commission made up of two representatives of SOF, one of the National Tourism Authority (ANT), one of the Health Ministry and one of the National Agency for Regional Development. The stock will be sold at the market price.

"By the end of this month, the first privatisation stage will be finalised," Aurel Mangra, director of SOF Bihor, was quoted as saying by Mediafax. If in 1993 the resort was visited by 93,200 Romanian and foreign tourists, at the end of last year there were 23,000 less visitors. Baile Felix resort has a capacity of 3,450 places in 9 hotels and 3 villas, with 6 treatment bases and 10 pools.

In 1999, investments worth 5.5 billion lei were aimed at bringing in high performing equipment for treatment bases, at modernising kitchens, installing elevators and new furniture. In line with ANT information documents, there are six large companies left to privatise within tourism, with a share capital worth 50 billion lei, of which two are shore ones (Mamaia SA, Neptun-Olimp SA), two health resorts (Turism Felix SA, Hercules SA), while the last two are headquartered in Bucharest (BTT SA, Bucuresti Turism SA). At the same time, there are 16 medium-sized companies left to privatise, with a share capital ranging between 10 and 50 billion lei, five shore ones, six health resorts and five companies in various regions of the country and 47 small companies, with a share capital below 10 billion lei.