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Tuesday, October 19, 2004

Gaz de France to buy majority in Distrigaz

The Distrigaz, Petrom and Electrica privatisation are three very important steps in the Romanian privatisation process, meant to eliminate the state-owned monopols in some vertical industries in Romania.

Below is a detailed presentation of the Ditrigaz privatisation, courtesy of REUTERS.

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BUCHAREST, Oct 18 (Reuters) - France's Gaz de France (GDF) will pay a total of 311 million euros to get a majority stake in Romania's gas distributor Distrigaz Sud, the Romanian Economy Ministry said on Monday.

Privatisation of Romania's two main gas firms Distrigaz Sud and Distrigaz
Nord is a key move under accords with international lenders and a major step in
reforming the debt-ridden energy sector.

"Gaz de France will pay 128 million euros for a 30 percent stake (in
Distrigaz) and another 183 million euros to boost its participation to 51 percent,"
the ministry said in a statement.

Under the deal, to be signed during the visit of French Prime Minister
Jean-Pierre Raffarin to Bucharest, Gaz de France is committed to use the funds it
injects in Distrigaz for investments, upgrading and environment protection.

"That means Gaz de France has evaluated Distrigaz Sud at 426 million euros,
taking into account that on April 30, 2004, it (Distrigaz Sud) had a net
financial debt of 95 million euros," the statement said.

The transaction will be finalised by the end of the year, it added.

Romania in August chose GDF and Germany's Ruhrgas as winners in the sale of
its two main distributors.

Distrigaz Sud had a 462 million euros sales in 2003, when its net profit,
computed in line with International Accounting Standards totalled 21 million
euros.

Posted by Mihai : 10/19/2004 05:55:00 pm