24 C
Bucharest
September 17, 2021
BUSINESS

Gov’t resumes final stage of privatisation of Romtelecom


On Wednesday, July 24, the Romanian government adopted a decision providing for the resumption of the final stage of the privatisation process of Romtelecom, following next the state to delegate the Ministry for Information Society (MSI) to sell the minority share package it holds in the company, a press release informs. The shares carry a nominal value of RON 10 each, totalling RON 146.461 M and representing 45.99 percent of Romtelecom’s share capital, according to MSI. The decision stipulates that, as dictated by the law, the Ministry should select a specialized adviser, an investment bank or a consortium made up of an investment bank and a legal adviser, to be able to provide including investment services on the capital market, in order to complete the privatisation of the company. The completion of the privatisation process is considered appropriate in the current economic climate and also while considering the company’s profitability. Romtelecom posted RON 312.634 M in profit in 2012 and RON 2.729 bn in business turnover. Also, based on the precautionary standby agreements concluded with the IMF, the companies’ privatisation falls into the category of measures developed through structural reforms meant to ensure economic growth, considering that an increased confidence among investors, coupled with the privatisations planned within this programme, will bring new foreign direct investments (ISD) in Romania and inflows of banking capital.

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