The measure is stated in a draft Government decision approving the CFR Marfa privatization strategy.
In August, the ministry pledged to privatize CFR Marfa by December 2012.
The starting price will be set by the Transport Ministry based on a company valuation report. The auction participation guarantee was set at 20% of the face value of the stake. Bidders will pay an auction participation fee amounting to 5% of the face value of the stake.
In June, the ministry selected a consortium comprising US consultancy firm Deloitte, Musat&Asociatii and France’s Systra to advise on the sale of CFR Marfa.
According of the ministry, the consortium’s final report on the CFR Marfa privatization states the following scenario: the conversion into shares of the carrier’s debt to the state budget, of 678.34 million lei (EUR151.1 million), and of a part of the debt to CFR SA (RON250 million out of RON582.76 million), followed by the sale of the entire stake the ministry holds in the carrier. (EUR1=RON4.4881)