Romania: Electrica fails to overtake DSO companies from Fondul Proprietatea, SEE Energy News
Romanian electric power distribution holding Electrica and local investment fund Fondul Proprietatea didn’t reach an agreement about the minority stake of the company Electrica which are owned by the fund.
The two companies have decided to suspend negotiations after failing to agree on the price of this transaction.
In the previous few months Electrica has negotiated the acquisition of the Fund’s minority stake in the electric power distribution companies Muntenia Nord, Transilvania Sud, Transilvania Nord and electricity supply company Electrica Furnizare.
Fondul Proprietatea owns a stake of 22 percent in each of these companies, and its value is estimated at 173 million euros. The company Electrica, in which the state has ownership of 49 percent, wanted to achieve a price that would be close to 100 million euros, said a source familiar with the negotiations.
In the previous year, Electrica achieved a net profit of 91 million euros, which is almost 60 percent more than in 2013.
After the company announced the termination of negotiations with the Fund, the value of shares on the Bucharest Stock Exchange fell by 4 percent. The capitalization of the company fell to 940 million euros.