The consortium, fomed of brokerage firms Carpatica Invest and Swiss Capital, former KBC Securities, initially asked for a 3.99% commission if the stake was sold for at most EUR20 million. The commission would then be added with a percentage betwen 1% and 3% for the sum obtained above EUR20 million in the transaction.
Early-November, Transport Minister Anca Boagiu said the auction for a broker was cancelled, since there was only one bid, which was “incompliant and expensive”.
The cancellation of the auction and a new auction were decided in a Government meeting on November 9.
Nine days after the decision, on November 18, the consortium presented the minister with a new financial offer, where the commission was halved.
The new financial offer was brought by the Transport Ministry before the Government, and the Government agreed to sign the contract with this sole bidder.
The Government expects to collect between EUR20 million and EUR60 million for the 20% stake.
The base scenario that includes the transaction broker’s fee estimates that the government will collect EUR40 million, according to a government document obtained by MEDIAFAX.
Following talks with the International Monetary Fund, the government decided this summer to start procedures for listing Tarom, by selling a 20% stake on the Bucharest Stock Exchange.
Authorities agreed with the IMF to sell the 20% stake by the end of the year, and to privatize the company when market conditions are ripe.
As the selection of a broker for the transaction is delayed, authorities agreed with the IMF to postpone the procedure’s completion until the end of April 2012, the document showed.