Romania's Electrica to start talks with Fondul Proprietatea for subsidiaries

Romania’s biggest electricity distributor Electrica (EL) will start new negotiations with local investment fund Fondul Proprietatea (FP) for the minority stakes that the fund owns in the group’s subsidiaries. Electrica’s shareholders mandated the Board of Directors to finalize the negotiations by end of March 2016, reports local Profit.ro. The price Electrica is willing to pay for the minority stakes should be determined based on economic factor only, and the company should announce it whether Fondul Proprietatea accepts it or not. The company’s board will also have to present its arguments in setting the price. If the negotiations are successful, Electrica’s shareholders will vote on the deal in a shareholders’ meeting. Fondul Proprietatea owns stakes of about 22% in all of Electrica’s biggest electricity distribution and supply companies. editor@romania-insider.com