The Romanian Transport Ministry's negotiations with investors to take over state owned companies Tarom and CFR Marfa are well on their way and on a firm footing, according to the Transport Minister Ovidiu Silaghi. “The Ministry is in concrete and advanced talks with very experienced investors, who also have the adequate financial means to take over Tarom and CFR Marfa,” said Silaghi.

Privatizations will start at Tarom, which is the number one priority for the Ministry. Tarom and CFR Marfa's privatizations are among the priorities for Romania this year, according to the country's agreement with the International Monetary Fund (IMF).

The CFR Marfa privatization has to be completed by late October and the public offer from Tarom had a first deadline at the end of June, according to previous agreements with the IMF.

Romania’s state-owned airline Tarom recorded total revenues of EUR 305 million for 2010, up 15 percent compared to 2009, while the company’s net turnover was EUR 218 million, up 13 percent from 2009. It posted a loss of EUR 78.9 million in 2010, higher than the EUR 55 million loss in 2009.

The company’s privatization is part of the Romanian Government’s agreement with the International Monetary Fund (IMF). A consortium of Carpatica Invest and Swiss Capital will intermediate the listing of the 20 percent stake in the National Society of Romanian Air Transport Tarom SA on the Bucharest Stock Exchange (BVB).

Romania plans to sell a stake of 20 percent in CFR Marfa, either through an Initial Public Offering, or with a strategic investor, by October this year. The company posted losses of EUR 31.3 million last year, 68 percent higher than the level approved by the Government. CFR Marfa’s last profitable year was 2007.

editor@romania-insider.com

(photo source: Tarom)