Romania to sell energy companies to fund infrastructure

Romania plans to sell minority stakes in key energy companies this year, including OMV-owned Petrom and utilities Transelectrica and Transgaz, in order to finance public infrastructure projects

May 2010 - From the Print Edition

The Government expects to raise a significant amount through the sale of these stakes on international bourses and the Bucharest Stock Exchange (BVB).
Minister of Economy Adriean Videanu said that public tenders are also considered. “We will identify the most advantageous solution for the sale of these stakes,’’ he added. “The money will only fund infrastructure projects.’’
It is not clear yet what type of infrastructure is targeted – but there is a great need for the state to invest in ongoing and new motorway projects.
The Romanian state owns 20.6 per cent of Petrom’s shares and plans to retain only eight per cent in this company. The Government is also considering selling its minority stakes in Enel Romania and E.ON Romania to the respective Italian and German owners.
It is also unclear whether the Government intends to sell a minority stake in gas producer Romgaz, one of the few highly profitable state-owned companies.
Russian giant Gazprom has offered many times in the past to acquire Romania’s Romgaz.
Minister Videanu said the Government wants to remain majority owner in the state-owned energy companies.
Analysts argue that it will be hard for the Government to list all these minority stakes in 2010, as each of the companies will need to go under a thorough preparation before a listing.
The Petrom stake is considered the most attractive shares from those on offer – but there is also a high expectation of investor interest in all the state energy companies.