CEZ (Czech Republic), Enel (Italy), Gaz de France International (France), Iberdola (Spain) and RWE (Germany) have been included on the shortlist of investors that submitted bids for the takeover of Electrica Muntenia Sud, considered the most important electrical power distribution company in Romania.
The five companies are going to submit improved financial bids in one of the biggest deals at the moment on the Romanian market.
The sale of the company called "the pearl of the Electrica crown" is likely to exceed 750 million euros, almost double the value of the other four privatisations in the sector, Electrica Banat, Electrica Dobrogea, Electrica Oltenia and Electrica Moldova.
"Considering the high level of competitiveness and the quality of submitted bids and with a view of directing investors to make better binding bids, based on the mandate granted by the commission coordinating the privatisation, Electrica SA, as the seller, expects the value of the deal for the 67.5% stake to go beyond the level of 750 million euros," states a representatives of the seller, Electrica SA.
The sale of Romania''s largest bank, and investors'' rising interest in one of the European economies witnessing one of the highest annual rates of growth, have rendered domestic assets more expensive, irrespective of the sector they are part of, state some analysts.
In line with the privatisation strategy, the strategic investor will directly acquire 51% in Electrica Muntenia Sud, and will contribute with funds to a share capital increase operation, to eventually hold a 67.5% stake.
Overall, eight companies submitted financial and technical bids to take over the majority stake in Electrica Muntenia Sud - AES Southern Europe Holdings BV (US), CEZ a.s. (the Czech Republic), Enel SpA (Italy), EVN AG (Austria), Gaz de France International SAS (France), Iberdrola S.A (Spain), RWE Energy AG (Germany) and Union Fenosa International SA (Spain).
Two interested German groups, E.ON and EnBW, gave up submitting further bids for the takeover of the distribution company that supplies electricity to Bucharest. Over the following period, the negotiation commission is going to send the five selected investors all the information they need to prepare and hand in the improved binding offers.
Electrica Muntenia Sud has more than one million customers in Bucharest and the nearby counties. adrian.mirsanu@zf.ro
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