“Privatization revenues are estimated at RON291.09 million, resulting mainly from the sale of a majority stake of 51% in CFR Marfa,” according to the explanatory note to a draft Government decision on the revenue and expenses budget of the Transport Ministry.
According to the draft strategy for the privatization of CFR Marfa, Romania’s government will sell a majority stake in the company, including the stake resulted from the conversion into shares of the company’s debts, through preliminary bidding negotiations followed by a sealed-bid auction.
The guarantee to participate in the auction is the equivalent in lei of EUR10 million, or 17% of the face value of the shares owned by the state, and the participation fee is the equivalent in lei of EUR20,000, reads the document.
Romania has pledged to sell a majority stake in CFR Marfa by mid-May, with the deal to be complete once “all conditions in the sale-purchase agreement are satisfied,” according to the country’s latest letter of intent to an international loan program.
Under a EUR3.6 billion loan agreement with the International Monetary Fund, the government has pledged to sell shares in several key state-run companies, including Transgaz (TGN.RO), CFR Marfa, natural gas producer Romgaz and nuclear power company Nuclearelectrica.
CFR Marfa was supposed to be auctioned by the end of 2012, but the sale was delayed due to poor market conditions and regulatory proceedings. The government hired a consortium comprising U.S. consultancy firm Deloitte, Musat&Asociatii and France’s Systra to advise on the sale. (EUR1=RON4.3771)