Bloomberg News

Romania Gets Two Offers to Manage Hidroelectrica Share Sale

March 01, 2012

Romania received offers from two groups, including Goldman Sachs Group Inc. (GS) and Citigroup Inc. (C), seeking to manage the initial public offering of hydropower generator Hidroelectrica SA on the Bucharest Stock Exchange.

A group led by UniCredit Bank AG and another one led by BRD-Groupe Societe Generale (BRD) SA submitted the two offers to manage the sale of a 10 percent stake in Hidroelectrica by October this year, the Bucharest-based company said today in an e-mailed statement.

Romania is pushing ahead with plans to sell stakes in state-owned companies this year, even after market turmoil led to the failed sale of a 9.8 percent stake in the biggest oil company, OMV Petrom SA (SNP), in July last year. The government wants to raise funds to finance its infrastructure investments and outdated energy industry as it narrows a budget deficit to 1.9 percent of gross domestic product this year.

“A joint commission of the Romanian Economy Ministry and Hidroelectrica opened the offers today and will proceed with their assessment, as part of the next stage,” according to the statement.

The Unicredit group also includes Erste Group Bank AG (EBS) and its Romanian unit Banca Comerciala Romana SA, Romanian brokerage BT Securities SA and Goldman Sachs, while the BRD-led group includes Citigroup, Societe Generale SA (GLE) and local brokerage Intercapital Invest SA, according to the statement.

The government plans to start its sales this year with a 15 percent offering in its utility Transelectrica SA (TEL) in mid-March after finishing a European tour to build interest among investors. It also wants to sell a 15 percent stake in another utility Transgaz at the end of April and in natural-gas producer Romgaz SA at the end of June.

To contact the reporter on this story: Irina Savu in Bucharest at

To contact the editor responsible for this story: James M. Gomez at

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