Romanian government sets deadline for CFR Marfa privatization

Newsroom 16/08/2013 | 06:00

The privatization conditions of Romania’s CFR Marfa, the rail freight operator, have been published through a government decision in the Official Gazette, Mediafax newswire reports.

The sale of a 51 percent stake in the freight operator has to be completed by mid-October and privatization bid winner GFR – controlled by Romanian railroad tycoon Gruia Stoica – has to abide to a fresh raft of rules enforced by the government.

GFR will have to deposit EUR 20 million in an escrow account, which is 10 percent of the privatization price, and receive the green light from the Competition Council before it can take possession of CFR Marfa. The company has already paid a tender guarantee of EUR 10 million.

PM Ponta said recently that CFR Marfa will appoint a private manager to restructure its business in case the privatization fails.

Stoica will have to pay the acquisition price of EUR 202 million in a single tranche and President Basescu recently claimed the tycoon was scrambling for cash to buy CFR Marfa.

GFR’s owner said last week in a broadcasted appearance that he already had a “significant part” of the funding necessary to seal to deal.

“Each banking institution has a risk department and they said we are bankable and can go forward,” said Stoica.

CFR Marfa’s privatization is part of the deal agreed with international lenders.

Ovidiu Posirca

 

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