The Romanian state wants to sue Italian energy group Enel for failing to respect the privatization contract of Electrica Muntenia Sud.

Enel later divided the company into Enel Distributie Muntenia and Enel Energie Muntenia to separate the energy distribution and supply activities, as required by the EU law. The state wants to ask for compensation in exchange for the dividends that Enel should have granted the state from the two companies’ profits in 2012, reports local Profit.ro.

According to the privatization contract of Electrica Muntenia Sud, Enel had the obligation to buy from the state an additional 13.57% in Enel Distributie Muntenia and Enel Energie Muntenia by end-2012. However, this has never happened.

The state currently owns stakes of 23.57% in each of the two companies while Enel holds 64.42% and investment fund Fondul Proprietatea has 12% stakes in each of them.

After the privatization, Electrica Muntenia Sud was divided into the two companies.

editor@romania-insider.com