Friday is the deadline for the filing of nonbinding bids in the deal through which Italy’s Enel, the largest private energy distribution company locally, is trying to exit Romania in a bid to slash debts at group level.
According to market sources, five companies are reportedly interested in the process so far, out of which two are Romanian ones.
“At this moment, five non-binding offers are almost certain,” say sources close to the deal.
Electrica, the largest local power distribution company, which operates in Transilvania Sud, Transilvania Nord and Muntenia Nord areas, and Nuclearelectrica, the firm that secures 20% of Romania’s power output, are the companies that will act from the part of the Romanian state in this deal.
For Nuclearelectrica, at least, the company that would best complete its portfolio out of the ones put up for sale by Enel is former Electrica Dobrogea. Nuclearelectrica is the administrator of Cernavoda nuclear power station.
“E.ON, GDF and State Grid Corporation of China are also interested in the sale process,” added the above-quoted sources.
According to them, French GDF Suez is reportedly interested in taking over Muntenia Sud, the more so as they also control gas distribution in this region through former Distrigaz Sud. GDF Suez officials would not comment on the issue.
Germany’s E.ON is supposedly interested in taking over Electrica Banat, said the above-quoted sources. The group’s representatives chose not to comment. The German group’s electricity and natural gas distribution and supply business in Romania tops EUR1 billion.
In early October, Enel chief executive officer Francesco Starace said Chinese companies are interested in buying the assets of Romania and Slovakia Enel wants to sell. He specified State Grid Corporation of China is interested in buying distribution and sale operations of Romania.
In July, Italy’s Enel, which through privatization processes became Romania’s largest private power distribution company, with 2.6 million clients, a business of above EUR1 billion and operating profit worth EUR289 million, announced their intention to leave the local market in a bid to cut the group’s debts.
According to information provided by market sources in late September, the Italian group would want to get EUR1.8 billion from the sale of all companies in Romania, but in reality the assets are not worth more than EUR1.2 billion. According to the same sources, the group is likely to give up selling Romanian operations should it not get the price it wants.
(English version by Catalina Apostoiu)