Romanian government to sell 10 percent of its shares in Romgaz

Monday, April 18, 2005

The Romanian Minster for Economy and Commerce, Codruţ Sereş, announced on Friday that his ministry intends to sell 10% of its shares in the state-owned natural gas distributor, Romgaz, this year. The Ministry is still deciding whether to transfer the stock to financial investors or whether to list it on the Bucharest Stock Exchange.

Romgaz is one of the largest state-owned companies in Romania falling under the ownership of the Ministry of Economy and Commerce. In 2005, the company is expected to have an estimated turnover of 648 million euro.

Romgaz is the latest Romanian energy company where plans have been announced for privatisation. Last year, the privatisation of natural gas distributors Distrigaz Sud and Distrigaz Nord was proposed, and is expected to be fully completed by the end of this month. Last year, Romanian oil giant Petrom was privatised, in the country's largest ever privatisation, and this year the Electrica Group of electricity distributors was sold off to various financial investors.