CFR Marfa privatization attracts over 80 bidders

The Romanian Ministry of Transport has received 86 offers from rail companies, investment groups and banks for the rail freight operator CFR Marfa, which should privatized by year end, according to Agerpres newswire.

The government initially agreed with the IMF to sell a majority stake in the state-owned company, but recently decided to fully privatize it.

CFR Marfa, which holds a commanding 61.1 percent share of the freight market, estimates a loss of RON 95 million (EUR 21 million) this year and a revenue over RON 1.2 billion (EUR 266 million). Meanwhile, the firm claims RON 409 million (EUR 90.7 million) in receivables.

“CFR Marfa will enter the privatization procedure to find an important investor,” said PM Ponta.

The privatization includes the conversion of a RON 700 million debt in shares, to be funneled to the state budget and CFR. The full share package will be sold next at a market value that exceeds RON 1.1 billion (EUR 244 million).

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CFR Marfa had a rolling stock of 42,000 wagons and over 900 locomotives in 2010. It is the only company able to transport Romania’s coal production.

Ovidiu Posirca