Wednesday, October 8, 2008

Romania approves power holding setup

8 October 2008 | 18:06 | FOCUS News Agency

Bucharest. The Romanian Government approved Wednesday, by emergency ordinance, the setting up of the national power-holding, the Romanian Mediafax agency reports citing official sources.

The president with the Romanian Privatization, or AVAS, Teodor Atanasiu confirmed the information for Mediafax.

According to the emergency ordinance draft, AVAS will take over from Romanian Ministry of Economy and Finance a number of 361.98 million shares in power producer Hidroelectrica, worth RON10 each.

Following the transfer, the share capital of state-owned power grid Electrica will be hiked through AVAS’ in kind contribution, with the stakes in Hidroelectrica and thermal power producers Turceni and Rovinari.

Electrica will issue new shares to be given to AVAS. The privatization authority is the majority shareholder of Electrica and of the two thermal power producers.

Authorities said the power holding will be worth between EUR20 billion and EUR24 billion, with high return of investment, as the company's profis is seen at EUR800 million by 2012.

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