E.ON considers that a provision included in the contract to privatize Electrica Moldova, whereby employees have the right to 10% of the company’s shares, is unconstitutional, as it breaches private property rights, people familiar with the matter told Mediafax Monday.
According to the sources, the International Court of Arbitration approved E.ON’s request and has already sent it to the Romanian Constitutional Court.
E.ON took Electrica to court in July 2011, claiming the state-owned company refuses to sell the remaining shares in Electrica Moldova, which E.ON took over. Electrica replied saying it can only sell a 17% stake, since the remaining 10% of shares are reserved for employees.
Electrica also sued E.ON arguing that the company breached several contract terms, and asked the German utility group to pay damages worth EUR50 million.
The case is tried in the International Court of Arbitration.
E.ON Energie, part of E.ON, bought a 24.26% stake in Electrica Moldova in 2005 for EUR31.37 million and contributed EUR68.6 million to increasing its share capital to 51%.
Electrica Moldova was split into two companies in 2007, E.ON Moldova Distributie and E.ON Moldova Furnizare. In 2010, E.ON Moldova Furnizare merged with E.ON Gaz Romania, creating E.ON Energie Romania.