The largest privatisation in recent years, in the wake of which CEZ Czech group gets to control the former Electrica Oltenia, is nearing completion, after Fondul Proprietatea (Property Fund) got 230m euros for almost one third of CEZ Distributie and CEZ Vanzare units on Monday.

CEZ group, owned by the Czech state, has thus come to control 81% in the former Electrica Oltenia. To gain the full control over the company, the group is due to pay another 145m euros to Electrica by October 2. Thus, the deal by which CEZ acquires the capital that was not privatised in 2005 amounts to 375m euros.

Unlike the rest of privatisations, negotiations between CEZ and Fondul Proprietatea did not last more than three months, being carried out quietly, in the context where president Traian Basescu last year recommended privatisations take place through the stock exchange for higher transparency.

CEZ in April 2005 paid 166.5m euros to acquire 51% in the capital of former Electrica Oltenia, with Fondul Proprietatea being set up eight months later and taking over a 30% stake from the state.

The biggest privatisation of recent years is going to bring over 300m euros into the state's accounts directly or indirectly, considering Electrica is controlled by the Economy Ministry and the Finance Ministry owns 66% in Fondul Proprietatea.

Fondul Proprietatea gained almost 130m euros, given that stakes in CEZ Vanzare and CEZ Distributie had been booked at a historic cost of 100.8m euros. The fund's liquidity, in form of banking deposits and government bonds, thus climbed to almost 500m euros, with the fund becoming one of the wealthiest companies of Romania.

"This is the first major deal in Fondul Proprietatea's portfolio. We consider the price we got is very good, taking into account both the market value given by an independent assessor and the current conditions