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October 4, 2022

No majority stake privatization for Oltenia Energy Company

Privatizing the majority stake of the Oltenia Energy Company is out of the question because the company is registering profit, has a private management and has signed a USD 1 bln investment in Rovinari, Premier Victor Ponta stated during a show on RTV. At the same time, he pointed out that the package of 15 per cent of the shares that is listed on the stock exchange through capital increase will permit the drawing of new investments in development and environment conditions. He stated that the aforementioned things were discussed and agreed with the IMF on Monday. Premier Ponta also announced that the government will include in the strategy on privatizing CFR Freight a series of pre-qualification procedures for investors, procedures concerning their turnover, relevant experience and financial capacity, the document set to be discussed on Tuesday, February 5, within the Supreme Defence Council (CSAT) and approved by the government the day after. Ponta stated that he discussed this issue with President Traian Basescu who agreed with selling the company, on condition the privatization procedure will be different than the one applied in Oltchim’s case, namely an open tender. According to a note that forms the basis of a draft government decision prepared by the Economy Ministry, the government wants to double the registered capital of the Hunedoara Energy Company through a public offer for private companies, and after that stage the government wants to list the whole package of newly-issued shares on the stock exchange. In what concerns the process of privatizing the National Mail Company (Compania Nationala Posta Romana), the government will ask the investors taking part in the tender to file a warranty of EUR 2 M, which will be lost by the investor that “makes a circus like we saw at Oltchim.” The Romanian Mail Company will be privatized through a capital increase by mid-June, the tender announcement set to be published by the end of February, on condition the procedure is approved by the European Commission. The government took the commitment before the International Monetary Fund (IMF) to sell, in May-June, the majority shares package of the Hunedoara Energy Company. If no investor shows interest then the Hunedoara Energy Company will file for insolvency, the IMF’s letter of intent reveals.

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