Electrica pays over RON 750 M for Fondul Proprietatea shares at its subsidiaries

Fondul Proprietatea (FP) has signed a Memorandum of Understanding with Electrica for the disposal of the Fund’s holdings in Electrica subsidiaries, namely SDEE Distributie Muntenia Nord, SDEE Distributie Transilvania Sud, SDEE Distributie Transilvania  Nord and Electrica Furnizare, as a press release informs.

The aggregated value of the transaction would amount to RON 752,031,841.

“Shares would be acquired by Electrica together with all the rights attached to them under the applicable law, including the right to receive dividends, except for those for the financial year ending on 31 December 2016, which remain to be collected by the Fund, as already approved by the General Meeting of Shareholders of the Subsidiaries on 17 May 2017,” the release also reads.

The parties plan to execute the transactional documents pertaining to the envisaged transaction after obtaining the necessary corporate and shareholding approvals at Electrica and Subsidiaries level by 31 October 2017.

Fondul Proprietatea owns 21.99 percent of SDEE Distributie Muntenia Nord, SDEE Distributie Transilvania Sud and 22 percent of SDEE Distributie Transilvania and Electrica Furnizare.

In May, Franklin Templeton Investment Management Ltd. United Kingdom Bucharest Branch, in its capacity as Investment Manager of Fondul Proprietatea announced that has initiated a competitive process leading to potential disposals of the Fund’s holdings in Electrica subsidiaries and the marketing and sale process will be managed by Ithuba Capital AG, acting as sole financial advisor in connection with the envisaged transaction.