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Wednesday, June 01, 2005

Distrigaz Sud's privatization contract signed with Gas de France

The total value of the contract is estimated at 311 million euros.

The privatization process of Romanian gas distribution company Distrigaz Sud was concluded yesterday with French company Gas de France (GdF). The contract was signed last October after GdF agreed to pay 128 million euros for 30 percent of the Romanian company and invest another 183 million euros through a capital increase.

The latter should increase GdF's participation in Distrigaz Sud to 51 percent and the government will keep 49% of the gas company.

Distrigaz Sud's infrastructure covers 20 counties over a 100,000 square kilometer area and supplies natural gas to 11 million individual and 40,000 industrial consumers.

The management team of Distrigaz Sud will be "mostly French" in the first phase after the privatization in order to ensure the company's successful integration into Gaz de France, according to Jean Abiteboul, GdF manager for international operations.

The government's program for privatizations in the energy branch includes the sale of Romgaz SA, Electrica Muntenia Sud and other companies in the energy sector. Regarding the privatization process of Romgaz SA, local authorities announced the deadline for letters of intent from financial consultants is June 20.

Posted by Iulia Rasoiu : 6/01/2005 10:51:00 am