Monday, November 3, 2008

Romania Transelectrica postpones new bourse listing

Mon Nov 3, 2008 4:38am EST

BUCHAREST, Nov 3 (Reuters) - Romanian power grid operator Transelectrica TSEL.BX will postpone the listing of an additional 10 percent stake on the Bucharest bourse indefinitely due to poor market conditions, a company executive said.

The state-owned monopoly had announced plans to raise its float on the bourse to ensure investment funding in early 2009 after it sold 10 percent of its shares through an initial public offering in 2006, becoming one of the largest listed power utilities in the region.

Last year, Romania used a further 5 percent stake in Transelectrica to compensate people whose properties were seized under communism.

"The idea of financing investment projects through the capital market by raising the free-float by 10 percent is postponed, basically, indefinitely," Razvan Purdila, a director of the group was quoted as saying by daily Ziarul Financiar.

"Perhaps in the second half of 2009. The comeback of financial markets is much more slow." In late October, Standard & Poor's revised its outlook on Transelectrica to negative from positive, while affirming its 'BB+' long-term foreign and local currency corporate ratings.

On Monday, Transelectrica shares were quoted at 12.5 lei ($4.4) per share, up 0.8 percent on the day and compared with 9.9, its lowest level in a year hit on Oct. 27. (Reporting by Luiza Ilie; Editing by Sharon Lindores)

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