Electrica: Preliminary negotiations on the potential acquisition of FP's stakes in its subsidiaries fail

The preliminary negotiations between Electrica and Fondul Proprietatea for the potential acquisition of the minority stakes the fund holds in the company's three distribution subsidiaries, as well as in its supply division, have failed, according to announcements sent to the Bucharest Stock Exchange, where the two entities are listed.

“Electrica S.A. hereby informs shareholders and investors that Electrica and FP have decided to cease the negotiations in relation to the potential acquisition by Electrica of the minority participations held by FP in the following subsidiaries: S.C. FDEE Electrica Distributie Muntenia Nord S.A., S.C. FDEE Electrica Distributie Transilvania Sud S.A., S.C. FDEE Electrica Distributie Transilvania Nord S.A., and Electrica Furnizare S.A., since no consensus was reached regarding the transaction's price,”states an informing of Electrica.

According to the 2014 year-end information, the fund's stakes in Electrica's subsidiaries are valued at approximately 770 million lei, so the offer submitted by Electrica was probably underpriced.

Fondul Proprietatea holds 21.99 percent of the shares in Electrica Distributie Nord, a 22 percent stake in Electrica Distributie Transilvania Nord, a 21.99 percent participation in Electrica Distributie Transilvania Sud, and 22 percent of the shares in Electrica Furnizare.