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Monday, October 18, 2004

More time for Electrica Privatisation

source: REUTERS

BUCHAREST, Oct 18 (Reuters) - U.S. company AES has said it needs more
time to draft a competitive final offer in the sale of Romanian power firms
Electrica Oltenia SA and Electrica Moldova SA, newspaper Adevarul reported on
Monday.

The privatisation of electricity distributors is a key element in the
restructuring of the Balkan state's ailing power industry, as demanded by
international lenders and by the European Union, which Romania hopes to join in 2007.

"AES had no intention to withdraw from the race. But we need time to submit a
competitive offer," AES Vice President Joseph Brandt was quoted as saying. He
said AES aims to lodge the bid by Nov. 1.

In early October the Economy Ministry extended the bidding deadline for
Electrica by two weeks to Oct. 18 following requests by some of the prospective
bidders, and said that Greece's Public Power Corporation and AES had
withdrawn from the race.

The five qualified prospective bidders are Greece's Public Power Corporation,
Czech firm CEZ , Germany's E.ON , Spain's Union Fenosa
International and AES.

Romania launched the sale of Electrica Moldova and Electrica Oltenia in
April. Electrica Moldova has 1.31 million customers and Electrica Oltenia 1.36
million.

The ministry is offering 24.62 percent in each distributor to a strategic
investor, which must raise its stake to 51 percent through a share capital
increase.

Posted by Mihai : 10/18/2004 10:49:00 pm