Romanian state sells minority share package in Transgaz for EUR 72 million

The Romanian state sold the 15 percent share package in Transgaz, for EUR 72 million, during a secondary public offering. The sale price was of RON 179 per share, below the RON 197 per share closing price on Tuesday, April 16. The raised amount is closer to the lower end of the expected sales price, based on the minimum and maximum price offer. The SPO's sale price gives investors the chance to make a profit if they plan to sell immediately on the stock market, where the price is slightly higher.

The Minister Delegate for Energy Constatin Niţă however said this was a success and a good start for other secondary listings of minority packages in state companies. The offer, which was launched in the beginning of April, was over subscribed. The Government was then trying to raise EUR 92 million, based on the maximum price in the offer. The Romanian government approved a price range for institutional investors from a minimum RON 171/share to a maximum RON 230 RON/share (EUR 38.66 – EUR 52/share). A total of 1.7 million shares were on offer, suggesting that the sale could have raise between EUR 68 million and EUR 92 million. The sale was among those demanded by the International Monetary Fund (IMF), which has extended Romania's current Standby Arrangement to allow the country time to meet outstanding objectives. The Underwriting Syndicate for Transgaz' SPO was composed of S.S.I.F. Raiffeisen Capital & Investment S.A. (Lead Manager and Joint Bookrunner), Wood & Company Financial Services a.s., (Manager and Joint Bookrunner) and S.S.I.F. BT Securities S.A. (Manager). editor@romania-insider.com