Wednesday, October 23, 2013

AfP: Romania launches gas company IPO before IMF review

Romania on Tuesday launched the sale of a 15 percent stake in Romgaz, the largest producer of natural gas in Central Europe, seeking to raise between $425 million and $567 million.

The sale would meet one of Romania's biggest commitments to the International Monetary Fund and the European Union, made in return for four billion euros ($5.4 billion) in standby aid.

An IMF-EU delegation is expected to arrive in Bucharest on Tuesday for a review of the loan agreement.

The IMF and the EU insists that the sale of big, loss-making transport and energy companies will spur economic growth, which is expected to reach 2.0 percent in 2013.

Romgaz is the largest producer and supplier of natural gas in Romania with a production of 5.66 billion cubic metres in 2012, the Bucharest stock exchange said in a press statement.

Shares in Romgaz will be sold at a price ranging from 24 lei ($7.4) to 32 lei ($9.9) at the Bucharest and London stock exchange.

In September, the centre-left government sold a 10 percent stake in the nuclear energy producer Nuclearelectrica, raising 86 million USD.

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