Wednesday, September 29, 2010

Romania Will Probably Sell 15% of Transelectrica by May 2011, Baicusi Says

Romania will probably sell 15 percent of Transelectrica SA, the state-controlled power grid manager, by May 2011, to help cover a budget deficit and finance investment, Chief Executive Officer Adrian Baicusi said today.

The government, which owns 73.7 percent of the utility, plans a secondary offering on the Bucharest exchange to increase Transelectrica’s traded equity to 27.8 percent, Baicusi told Bloomberg News in an interview.

“We’re expecting the sale via the secondary offering to happen by May if the process stays on track,” Baicusi said.

Romania plans to sell minority slices of its utilities and of OMV Petrom SA, the country’s biggest oil company, to meet international bailout conditions and to finance infrastructure investment. The country is relying on a 20 billion-euro ($27 billion) bailout led by the International Monetary Fund after recession and austerity measures reduced budget revenue.

Transelectrica’s shares were unchanged at 18.8 lei as of 2:07 p.m. local time in Bucharest, valuing the company at 1.38 billion lei ($435 million).

To contact the reporter on this story: Irina Savu in Bucharest at isavu@bloomberg.net.

To contact the editor responsible for this story: James M. Gomez in Prague atjagomez@bloomberg.net

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