Up to 20 percent of Tarom shares to be sold through BSE listing or to strategic investor

The government will sell at most 20 percent of Tarom’s shares through a stock exchange listing or by selling them to a strategic investors, shows the intent letter that the government has agreed with upon with the IMF, Mediafax reports. The government also gave up selling minority stakes in Bucharest and Timisoara airports. Initially, the agreement with the IMF entailed the complete privatization of Tarom and the sale of 20 percent stakes in Henri Coanda airport in Bucharest and Traian Vuia airport in Timisoara.

Romanian authorities are expected to select a legal consultant and an investment bank to manage the airline’s IPO. At the same time, the government committed to select by the end of November a private management for Tarom.

Romanian airline Tarom flew 2.2 million passengers last year, up 24 percent from the 1.77 million the previous year.