European giants sprang into action following the Romanian State's decision to sell the country's most coveted electricity distribution - Electrica Muntenia Sud, dubbed by the experts "the crown jewel."
The deal, that may amount to more than 200 million euros, is now at the stage where the potential buyers are choosing their negotiators, as the privatisation announcement is soon to be published.
The privatisation strategy endorsed by the Government stipulates the direct sale of a 50% stake in the company, with the investor set to operate a capital increase that will see the winner get hold of 67.5% of Electrica Muntenia Sud.
RWE, the German utilities giant, is preparing to enter the race together with British law firm Linklaters, according to market sources. In 2002, RWE was close to be directly entrusted with Electrica Muntenia Sud, but management and strategy changes in the German group eventually blocked the group's acquisition plan, which also included the Romanian company.
Italy's Enel, which has already bought Electrica Banat and Dobrogea, wish to push through with their expansion strategy, by taking over Electrica's branch that operates in the Capital City. Enel chose law firm Musat & Asociatii, which also advised the company in the case of the two transactions closed with Electrica.
Gaz de France is counting on Nestor Nestor Diculescu Kingston Petersen, the same law firm that advised the French company in the acquisition of Romania's largest gas distributor, Distrigaz Sud. Czech company CEZ will be assisted in the privatisation process of the Electrica branch by law firm Tuca & Asociatii. The Czech company bought 51% in Electrica Oltenia this spring.
The list of investors that have expressed interest in Muntenia Sud also comprises Spanish company Iberdrola, which is now looking to build its own negotiating team, and US-based AES Corporation, according to the latest available information. The list of potential candidates may also include German company E.ON and Greece's Public Power Corporation.
E.ON already has a foothold on the Romanian market, after having bought the gas distributor operating in northern Romania - Distrigaz Nord and energy distributor Electrica Moldova. For the sale of Electrica Muntenia Sud, the State is advised by PricewaterhouseCoopers. |
