Romanian Tradeville offers credit line of up to EUR 68,000 for subscriptions to Transelectrica offer

Online trading company Tradeville is offering a credit line of up to some EUR 68,000 ( RON 300,000 ) to current customers interested in the secondary public offering for Transelectrica, through which the Romanian state hopes to sell 15 percent in the company on the Bucharest Stock Exchange. The SMART trading service can be accessed based on the securities portfolio initially held by the client at Tradeville, which will be used as a guarantee in obtaining the credit line. The approval will come within 24 hours from the time all necessary documents are submitted. Until March 27, investors will be able to buy up to 15 percent of electricity network operator Transelectrica on the Bucharest Stock Exchange during the Secondary Public Offering at a minimum price of RON 14.9 per share (some EUR 3.4), while the maximum price per share was set at RON 19.2, approved by the Government. With this offer, the state could cash between EUR 37.5 million and EUR 48.3 million. The Romanian state - which holds 73.7 percent of the company - has managed to attract, in the first five days, subscription orders for over 600,000 shares, representing 5.5 percent of the total shares on sale. BCR, SSIF Intercapital Invest and SSIF SWISS Capital are acting as intermediaries for the offer. Transelectrica will invest EUR 250 million in expanding its grid and modernizing its existing electrical stations by 2014. Some EUR 57 million will be invested this year alone. The company’s investments in its network reached EUR 343 million between 2008 and 2011. In 2011, Transelectrica posted a net profit of EUR 21.2 million (RON 90.2 million) in 2011, nearly 10 times higher than the 2010 results. The company had a net turnover of around EUR 685 million (RON 2.9 billion), up 14 percent compared to the EUR 603 million (RON 2.54 billion) posted in 2010. Irina Popescu, irina.popescu@romania-insider.com