The offer price for 15 per cent of Transelectrica’s shares will have a minimum threshold of RON 14.9 per share, 12.6 per cent below the stock quote registered on Monday, and a maximum threshold of RON 19.2 per share, 12.5 per cent above the most recent stock quote, Mediafax informs. The minimum offer price includes the minimum discount that many fund managers have pointed to in order to hike the operation’s chances of success. Fund managers state that they would buy Transelectrica shares if the state accepts a price 10-15 per cent below the stock quote, considering that the energy distributor’s profitability is limited by the Romanian Energy Regulatory Authority’s (ANRE) regulations, although its evaluation indicators are generally better compared to those of similar companies. Transelectrica’s most recent stock quote stood at RON 17.06 and was registered on Monday’s trading day. The company’s shares were stopped from transaction before the trading day opened, in order to wait for the government’s decision on the offer price’s minimum and maximum thresholds. Transelectrica’s offer will be launched today after the Romanian National Securities Commission (CNVM) approved the final prospect yesterday. The operation will last ten working days, until March 27. According to official sources, the prices were approved during the government meeting on Tuesday. Based on the minimum price of RON 14.9 per share, the package put up for sale is estimated at RON 163.8 M (EUR 37.6 M). Based on the maximum price of RON 19.2 per share, its value stands at RON 211.1 M (EUR 48.4 M). In other developments, the consortium formed by the Banca Comerciala Romana (BCR), Intercapital Invest and Swiss Capital could earn a commission of EUR 740,000 to EUR 954,000 for intermediating the state’s sale of 15 per cent of Transelectrica shares. The intermediaries will receive 1.97 per cent of the value of sold shares only if the offer is successful. A minimum of 70 per cent of the planned package has to be sold in order for the operation to be considered a success. If all shares are sold at the minimum price the package will be worth RON 163.8 M (EUR 37.6 M) and the consortium’s commission will total RON 3.2 M (EUR 740,000). Transelectrica will invest more than RON 1.1 bln (EUR 254 M) in 2012-2014, mainly in the expansion of its electricity grid and the construction and updating of electrical stations. In the last four years TEL earmarked EUR 343 M for this kind of projects.
Ministers and heads of management authorities will be held responsible for EU funds
According to the government spokesperson, the ministers and heads of management authorities that fail to take, in the following period, measures meant to accelerate the absorption of EU funds and to eliminate the problems within this process will be fired. Premier Mihai Razvan Ungureanu warned the ministers and the heads of management authorities that he considers them responsible for absorbing EUR 6 bln from European funds this year, a target previously set by the government. Ungureanu pointed out that the level of absorption of EU funds significantly influences GDP growth. “In case structural and cohesion funds are absorbed 100 per cent we will have a GDP growth of 1.8 per cent this year. An absorption rate of 80 per cent means 1.5 per cent growth per year, while the most pessimistic scenario (an absorption rate of 60 per cent) means a 1.2 per cent growth per year. The goal is 100 per cent,” Ungureanu said. The premier also explained that the absorption of EU funds also creates jobs. “If we absorb 100 per cent of structural and CAP cohesion funds we will create 20,200 jobs per year. If we absorb 60 per cent we will create 16,600 jobs per year. In what concerns the absorption’s gross impact on budget revenues from social insurance contributions and income tax, an absorption rate of 100 per cent means EUR 0.98 bln per year, while one of 60 per cent means EUR 0.82 bln per year,” Ungureanu said. The Premier pointed to a similar evolution in the case of revenues from VAT – a growth of EUR 0.68 bln in case of an absorption rate of 100 per cent and a growth of EUR 0.57 bln in case of one of 60 per cent.