The sale of 51% in Petrom, Distrigaz Nord, Distrigaz Sud and two branches of Electrica will bring 2.25 billion euros to the Romanian economy by the end of the year, with the State directly receiving 958 million euros. It has taken Romania fourteen years to reach the peak of privatisation, although Hungary and the Czech Republic, for example, had already managed this by 1995-1996.
German company Ruhrgas, part of the world's largest utilities company E.ON, yesterday signed the 304 million-euro privatisation contract for a 51% stake in the natural gas distributor, Distrigaz Nord.
The deal with Ruhrgas is the Romanian State's first real privatisation in that it involves the sale to a private company of the majority share in a state-owned company.
The Germans will pay 125 million euros for the direct acquisition of 30% in Distrigaz Nord and will also make a cash contribution of 179 million euros, which will increase their stake to 51%. The foreign investor will also take on net financial debts of 13 million euros
According to officials from the Ministry of Economy and Trade, the transaction (the purchasing of the 30% stake and the capital increase) will be completed by the end of the year. Until that time, Ruhrgas representatives will be actively involved in all major strategic decisions of the company.
The privatisation contract for Distrigaz Nord SA Targu Mures was signed yesterday at Victoria Palace (the Government headquarters) by Dorin Mucea, head of the Office for State Participations and Industry Privatisation, with Burckhard Bergmann, chairman of the E.ON Ruhrgas Board, and Achim Saul, head of Ruhrgas Sales Division for Central and Eastern Europe.
The Ruhrgas offer values the entire Distrigaz Nord stock at 416 million euros.
The offer by the Germans is very similar to t
