Poor market conditions steer Romania away from Transgaz stock listing, capital increase chosen instead

Romania will no longer list a share package of 15 percent in gas company Transgaz as a means to privatize, but instead do a share capital increase. Economy Minister Daniel Chitoiu has said that a capital increase will be attempted for part state owned natural gas supply company Transgaz. Speaking to local news service HotNews, Chitoiu said, “If we know the stock market is down, the state has no interest in carrying out a listing for the sake of it.” The minister also said that Hidroelectrica and Complexul Energetic Oltenia would have private management installed “by the end of the year.” The Romanian state has promised the International Monetary Fund that it will sell a 15 percent stake in the natural gas supply grid Transgaz. Originally planned for October, it was later agreed with the IMF that the 15 percent stake would be sold by the end of 2012, but due to current market conditions, the government has decided to go for a capital increase instead. The money raised will be reinvested in the gas supply infrastructure as well as in new projects, including the planned Nabucco gas pipeline. Chitoiu said the government would be looking for a “fair price” but did not give a figure. editor@romania-insider.com