CEZ (Czech Republic), Enel (Italy), Gaz de France, Iberdrola (Spain) and RWE Energy (Germany) submitted final bids on Tuesday to take over a 67.5% stake the state owns in Electrica Muntenia Sud, market sources told ZF.
The sale of the power distribution company could surpass the value of 750 million euros, according to Electrica representatives'' expectations. The state will transfer its stake in Electrica Muntenia Sud, employing similar methods as it has done with previous privatisations. The buyer will directly acquire 50% in stock and will allocate funds for a capital raise, after which its interest will advance to 67.5%.
The privatisation commission in March selected five of the 10 companies that took part in the sale of the stake the state owns in Electrica Muntenia Sud.
Electrica Muntenia Sud has a share capital worth 191.3 million RON and more than one million customers.
Four of the eight electrical power distribution subsidiaries of Electrica have been privatised so far. They were taken over by CEZ, Enel and E.ON. Electrica Muntenia Sud last year registered turnover standing at 391.6 million RON (1.419bn euros), 40% higher from the previous year.
The company supplies Bucharest and neighbouring counties with energy, and at the end of last year employed 2,094 people.
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. (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 German groups, E.ON and EnBW, gave up submitting any further bids to take over the distribution company that supplies electrical power to the capital city.
Over the forthcoming period, the negotiation commission is going to send the five selected investors all the information they need to prepare and make the improved binding bids.
Czech CEZ last year purchased the majority stake in the Electrica Oltenia power distribution company, in a deal worth almost 170 million euros. One third of the money accounted for the price of the stake, and the rest was the capital contribution of the strategic investor. At the same time, Italy''s Enel acquired the first two power distribution companies in Romania, Electrica Banat and Electrica Dobrogea, in deals that totalled over 125 million euros.
Another player that already has a presence on the Romanian market is France''s Gaz de France, which wants to take control of Muntenia Sud in order to create a "multi-utility" pole in southern Romania. Gaz de France acquired the majority stake in Distrigaz Sud in a deal worth 311 million euros. adrian.mirsanu@zf.ro
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