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Al Arrab Company to take over Electroputere Craiova

Joi, 20 septembrie 2007, 0:00

The State Assets Authority ended the negotiations with Al Arrab Company Ltd, for the privatization of the Romanian locomotive producer Electroputere Craiova. The privatization contract will be signed shortly, informs the NewsIn news agency, quoting governmental sources.

AVAS prolonged twice the deadline for privatization offers, 30 days each, because the negotiations on contract clauses took more than expected.

In June, AVAS selected Al Arrab for the privatization, for an offer including the assuming of Electroputere debts, investments and working capital, for a total of over 120 million euros.

Al Arrab will pay the state 2.3 million euros for 62.82% of the Electroputere stock, will ensure a 37 million euros working capital and will invest some 20 million euros. The company will also assume the 61 million euros debt of Electroputere.

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