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Friday, November 26, 2004

No Exclusive Talks Yet On Romanian Power Co Bids-Econ Min

The Romanian government denied Wednesday reports that it has started exclusive talks with parties interested in buying regional power suppliers.

The Economy Ministry said it is still evaluating bids from Germany's E.On AG ( EON) and the Czech Republic's CEZ AS (BAACEZ.PR) to buy Electrica Moldova and Electrica Oltenia.

The ministry denied a press report in daily Ziarul Financiar that said the government has started exclusive talks with E.On for Electrica Moldova, and with CEZ for Electrica Oltenia.

The government is offering a 24.62% stake in each power supplier, with the new owner required to gain a majority stake through a share capital increase.

The two companies supply electricity to the southwestern and northeastern parts of Romania, respectively.

Electrica Oltenia has 1.36 million customers and sells 6.8 million megawatt- hours a year, while Electrica Moldova has 1.3 million customers and sells 4.1 million MWh a year.

Earlier this year Romania sold two other power suppliers to Italian power company Enel SpA.
Enel agreed to pay EUR36 million directly to the Romanian state, and to make a capital injection of EUR76 million to acquire 51% of Electrica Banat and Electrica Dobrogea.

Electrica Banat provides electricity to western Romania, has 830,000 customers and sells 3.8 million megawatt-hours annually. Electrica Dobrogea serves southern Romania and has 590,000 customers, selling 3.6 million MWh annually.

Posted by Iulia Rasoiu : 11/26/2004 11:30:00 am