Saturday, February 24, 2007

Romania: Final bids for Electroputere Craiova on March 26

The Authority for State Assets Realization (AVAS) sells through negotiation based on improved, irrevocable and final bids, a 62.82 percent stake in Electroputere Craiova SA (southern Romania).
The final bids will be submitted by March 26, 2007 at 12.00 a.m. local time and the opening of the documents will take place the same day at 2.00 p.m. local time in the presence of all prospective buyers, ACT Media news agency reports.
‘'We are trying a privatisation with shareholders having stakes of just 20 percent.

We are very interested in the investments which are made in the company, under the form of working capital or the investments made in the first year of activity for the reorganisation of the activities.

We hope that benefiting from this capital inflow Electroputere should recover because the company has outlet.

Unfortunately the costs generated by the lack of funds for reorganisation triggered the high debts which the company has today,'' said AVAS president Teodor Atanasiu.

AVAS' move is the sixth attempt for the privatisation of the Craiova-based company dealing in the production of engines, generators and electrical transformers.

Electroputere SA Craiova was set up on September 1, 1949 when it produced equipment for the electricity sector and railway transport.

In 1990 the company split into seven companies and in 1994 they merged into the current holding Electroputere joint stock company.

At present, Electroputere Craiova has four production divisions (electrical equipment, rotative electric machines, transformers and urban and railway vehicles, a division of general services and plants of tools, devices, moulded and cast parts, repairs and upgrades of machine-tools and technological installations.

Among the documents of participation which bidders, Romanian individuals or companies have to submit at the same time with the final bids are a certified statement specifying all the state-owned creditors and the main suppliers of energy resources and water of the bidder.

The statement should emphasise they do not benefit from any facilitation at the payment to suppliers of energy resources and water, according to the Government's decision no. 57/2002.

This requirement can exclude a bidder if they benefit from facilitations or rescheduling of debts to the main suppliers of energy resources and water.

(Source:, 22 February 2007)

No comments: