Electrica offered RON790 million, but its offer was rejected by Fondul Proprietatea which asked for RON875 million.
Electrica thinks the fund’s proposed price is not sustained by an estimation of its medium and long-term performance and is even higher than the Net Asset Value (NAV).
Fondul Proprietatea holds minority stakes in Electrica Distributie Muntenia Nord (21.99%), Electrica Distributie Transilvania Nord (22%), Electrica Distributie Transilvania Sud (21.99%) and Electrica Furnizare SA (22%). The fund had received the minority stakes in the four companies in which Electrica is majority shareholder from the Romanian state, at its inception, back in 2005.
„The purchase price“ for all four minority stakes is RON422 million and Fondul Proprietatea assessed them at RON841 million, nearly double.
Electrica general manager Iuliana Andronache said Electrica and Fondul Proprietatea remain partners despite a new round of failed negotiations, while the fund’s Portfolio Manager, Greg Konieczny, said the fund is open to resume negotiations in the future, so long as Electrica stays committed.