GCB approves merger of RADET with ELCEN

The General Council of Bucharest approved the merger of RADET with ELCEN during yesterday’s meeting after two failed attempts due to not raising the necessary votes. All the 48 councillors attending the meeting supported the initiative. According to the mayor, Sorin Oprescu, the merger should be carried out in March 2015, reads Mediafax.

Thus, the Government’s request for issuing an act to enforce the transfer of ELCEN’s assets from the State’s ownership under the local authorities' control as provided by the Memorandum enacted by the Romanian Government in March 2013 was validated.

Oprescu explained that RADET is expected to become a trading company by the end of the year, thus, the merger should take place sometime around March 2015.

The merger, through which RADET’s debts towards the largest domestic thermal energy producer will be eliminated, follows the division process recently concluded by ELCEN through which two new companies have been set up - ”Societatea Electrocentrale Constanta S.A.” and ”Societatea Electrocentrale Titan S.A.”.ELCEN remains subordinated to the Romanian State which holds the majority stake (97.51 percent of the shares), while the remaining 2.49 percent of the shares are owned by Romgaz Medias. ELCEN has under its control the West CHP Plant, the South CHP Plant, the Grozavesti CHP Plant, the Progresu CHP Plant and the Repairs Facility.