In 2007, U.S. company Ford bought a majority stake in Automobile Craiova, which owned car plant Daewoo Romania, for EUR57 million.
The extra RON170 million Romania has received represent a part of the EUR70 million Daewoo Romania had in its accounts when the privatization contract was signed.
Under the privatization contract, Ford pledged to unite assets connected to Automobile Craiova into a single entity to be ceded to the Romanian state and to Automobile Craiova minority shareholders. These assets included firm Mecatim Timisoara and several plots of land. After privatization, Ford bought the stake owned by Automobile Craiova minority shareholders, delisted the company and kept the assets it should have ceded.
Capital market investors association AIPC notified the European Commission in 2011 regarding contract terms breached by Ford. Following the move, the U.S. carmaker said it would cede the assets and a part of the cash.
Along with the RON170 million, the state also received firm Active Conexe SA, which owns Mecatim Timisoara and several properties. The firm’s assets are valued at RON90 million and its operating capital stands at RON30 million, according to AVAS.
“Active Conexe might become profitable as many of its buildings, repair shops and commercial spaces are likely to generate revenues,” said AVAS representatives.