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October 4, 2022

CFR Marfa privatization contract has been signed

The Transportation Ministry signed on Monday, with Grup Feroviar Roman (GFR), a company controlled by businessman Gruia Stoica, the contract on privatizing CFR Marfa, Mediafax informs. The buyer has to notify the Competition Council. The Council can issue a positive decision, a positive decision with conditions, or a negative decision.
In June GFR was declared winner of the process of privatizing CFR Marfa, offering a price of EUR 202 M for 51 per cent of the shares. The government decision concerning the privatization of the railway freight carrier was published in mid-August in the Official Gazette, the deadline for finalizing the transaction being set at 60 days after the date the law comes into force, namely in mid-October. The law establishes that the finalization of the transaction, consisting of the transfer of the right of ownership over the package of shares, will be done under the condition of signing an escrow contract 30 days after the signing of the contract on selling the shares.
The escrow contract will be annexed to the sale contract and will mainly consist of the buyer paying 10 per cent of the purchasing price (RON 90.49 M) within two days of the signing of the escrow contract. The government however did not point out a deadline for the signing of the sale contract.
The transfer of the right of ownership over the majority shares of CFR Marfa is at the same time conditioned by “the Competition Council issuing an address or decision” in line with the Competition Law “and/or by the issuance of such a document by other competent competition authorities.” The closing of the sale of shares will be done only through the transfer to the seller’s account, namely to the Romanian state, the whole sum representing the price of the package of shares.

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