Last July, Enel, which had become the largest private electricity distribution company in Romania following privatization processes, announced it wanted to leave this market in an effort to curb group debt.
Enel serves 2.6 million consumers in Muntenia Sud, Banat and Dobrogea regions and posted more than EUR1 billion revenue and EUR289 million operating income in 2013.
At the end of last year when investors were called to submit non-binding bids, five companies did, market sources say. The five were Romanian state-run power companies Electrica and Nuclearelectrica, E.ON (Germany), GDF Suez and State Grid Corporation of China. Market sources say the Chinese investors have since backed out of the race because they wanted all the companies up for sale in a package deal, and met with the Romanian government’s opposition.
Last year, the then Energy Minister Razvan Nicolescu clearly said he would not encourage any investor to bid for the former Electrica Dobrogea, which is considered a strategic company under the current geopolitical circumstances. Moreover, the Cernavoda nuclear plant is in the area, so Nuclearelectrica in turn is interested to buy some of the assets Enel put up for sale.
Things became even more complicated last fall when the government took Enel to court in Paris in connection with the former Electrica Muntenia Sud, up for sale now, too, claiming over EUR521.5 million.
Telecom operator RCS&RDS is said to have shown interest in bidding, as well.
(English version by Loredana Fratila-Cristescu)