Government has changed the privatization strategy for CEN Hunedoara

Government has changed the privatization strategy for Complexul Energetic Hunedoara (CEN Hunedara) and issued a new version in which the majority stake, of 51% of the share capital, will no longer be sold on BSE, but to a strategic investor chosen by sealed bid and open outcry auction. The auction following which the strategic investor will be chosen will be preceded by negotiations with potential investors, according to a document obtained by Mediafax. The complex has a share capital of RON 203.39mln and is fully controlled by the state through the Ministry of Economy. The main items and conditions of the privatization contract negotiated with the selected investor, including the method of payment, will be submitted to the Government for approval and the privatization contract will only be signed after the Government’s opinion. The new project also provides that “for good reasons” the Ministry of Economy will be able to change the privatization method and/or the selection method of the investor and/or will be able to revoke the offer. The document reveals that the decision to conduct the privatization of CEN Hunedoara through share capital increase with a strategic investor has been made following talks carried out with the common mission of the International Monetary Fund, European Commission and World Bank in January 2013.

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