Romania: Gov to sell 51% stake in Electrica power utility company, SEE Energy News
Authorities expect to get more than 300 million euros from the sale of 51% stake in public utility company Electrica, initial public offering will begin on June 16, stated spokesman in department of energy of Romanian government. At the end of last week, the company Electrica published on the London Stock Exchange announcement listing on the stock market.
Gabriel Dumitraşcu the head of the privatization of the Department of explained that Romania in the energy sector requires investment of 30 billion euros, a sum which will be confirmed or revised in the autumn, with the launching of a new energy strategy of the country.
“The the required investment in energy sector is 30 billion. Once we adopt new energy strategy, these calculations will be updated. We will analyze strategy projects, deadlines, the destination of this money, ‘said Dumitraşcu.
Earlier he said the funds obtained from the process of listing on the stock exchange company Electrica will be used to strengthen TSO networks.
‘It’s easy to see why you should move the proceeds of the listing process: first, investment in networks, second – for investment in networks and the third – all investments in networks’, Dumitraşcu said.
At the end of last week, the company Electrica published on the London Stock Exchange announcement listing on the stock market.
Effective listing of business could be done in late June, the subscription will begin mid next month. ” According to the data submitted by the General Privatization and Management of State in the Department of Energy it is projected that in mid-June, will start subscription for Electrical and effective listing would take place in late June. Electrica intends to apply for admission of shares to trading on the Regulated Spot Market of BSE and that the GDRs to be admitted to listing on the Official List of the UK Listing Authority and to trading on the London Stock Exchange” stated in the release.
According to the Minister responsible for Energy, Razvan Nicolescu, Department of Energy plans to make the biggest IPO listing Electrica has ever occurred on BSE.
” At the same time, we know that certain investors express their optimism as take account of external circumstances, Romania’s sovereign rating and geopolitical context of possible developments in the region. We assure all that power is a very stable, solid, regulated and predictable income which will represent an investment in the medium and long term,” said Razvan Nicolescu.
Government committed in the agreement with the International Monetary Fund to list on the stock exchange in June 2014, supplier and distributor of electricity. In the letter of intent entered into by the Executive and the IMF on March 5, 2014, the main particulars of the privatization of Electrica are: separation of three regional societies liquidation of loss maintenance, retrieval of Electrica. Electrica minority shares held by the companies privatized distribution, solving the problem of non-payment by CFR purchases electricity from Electrica launch an initial public offer for a majority stake in the state, following the planned capital increase.
Launching offer is a structural benchmark, and the deadline is May 31.
Electrica Group is a leader in the distribution and supply of electricity in Romania.According to Energy agency ANRE in 2013, the group has distributed 16.1 TWh of electricity, representing 39% of the electricity distributed in Romania by about 3.6 million users.
According to ANRE in 2013, the group provided 9.7 TWh of electricity, representing 22.1% of the electrical energy in Romania, to about 3.56 million by end users.
Electrica reported a consolidated net profit (excluding minority interests) of 60 million on revenues of about 1.2 billion by the first quarter of this year, according to the company’s financial results.
On 31 December 2013, the company posted a consolidated net profit, excluding minority interests, amounting to 243 million, on revenue of about 5.2 billion lei.