The negotiations between State Assets Authority (AVAS) and the Italian energy company ENEL for the privatization of Romania's Electrica Muntenia Sud ended on Thursday. according to a press release from AVAS, the privatization contract was signed on Wednesday by the Economy Minister, Varujan Vosganian.
The contract has still to receive the formal approval of its shareholders at the end of the following week, than a governmental ordinance will end the bureaucratic process with a decision draft.
The Italian company won the bid in 2006, offering 820 million euros for 67.5% of the Electrica Muntenia Sud shares. Enel will first buy 50% of the Electrica Muntenia Sud shares from the company, then will subscribe new titles through a capital increase decision.
Enel also bought other two branches of Electrica - Electrica Banat and Electrica Dobrogea - out of all eight branches. Electrica Oltenia was bought by the Czech company CEZ, while Electrica Moldova is now owned by the German group E.ON.