Despite relaxed terms, new bidders fail to show up for Romania's CFR Marfa, same group of three previously rejected apply
The same companies that had been rejected during the first try of the CFR Marfa privatization in Romania submitted offers during the second take of the privatization process. There was no new investor interested in taking over Romania's railway freight company.
OmniTRAX, Grup Feroviar Român (GFR) and the association between Transferoviar Grup (TFG) and Donau-Finanz GmbH & Co KG Austria again submitted offers in the pre-qualification round. The deadline for offers passed on Thursday, May 23, at 13,00.
Romania's Transport ministry rejected all three bidders in the previous pre-qualification stage on May 15, without mentioning the reasons, and for the second try of the bid, it relaxed the conditions, lowering the required turnover from EUR 100 to EUR 20 million. The asking price was however kept, EUR 180 million for 51 percent in CFR Marfa. The changes failed to attract new bidders however.
Prime Minister Victor Ponta said he is “moderately optimistic” about the prospects of a successful resumption of the state owned rail freight CFR Marfa privatization. Meanwhile, Transport Minister Relu Fenechiu indicated that he believed the June 20 deadline for the CFR Marfa privatization would be met.
Transport Minister Relu Fenechiu said after the rejection of the three bids last week that he would resign from his post “the next day” if the CFR Marfa privatization failed due to mishandling by the process by the Ministry.
Transport Minister Relu Fenechiu previously said that even after selling 51 percent in CFR Marfa, the country would still be able to prevent the sale of the company’s assets as scrap metal, and the restrictions in the task book will prevent intermediaries from signing up in the privatization race. The procedure will have three stages, pre-qualification, negotiation based on preliminary offers and the bid with closed offers.
This privatization is among the pledges Romania has made to its main financier the IMF.
CFR Marfa is the largest railway freight carrier in Romania, with a turnover of EUR 261 million in 2011 and a loss of EUR 22 million. Its debts of almost EUR 400 million to the state were to be wiped.
editor@romania-insider.com
