The Romanian government has announced its intention to sell a further stake in Electrica Muntenia Sud to the owner, Italian energy company Enel, hoping to raise EUR 377 million from the sale.

The green light was given yesterday (July 31 ) for the sale of a 13.57 percent stake in Electrica Muntenia Sud to the Italian firm, which currently owns a majority stake in the Romanian power company.

“Part of the money obtained from the Electrica unit stake sale will be used to fund investments and the upgrades needed in the electricity sector. Some money will also go, indirectly, to the state budget,” said Finance Minister Florin Georgescu, quoted by news service Bloomberg.

The possibility of buying further shares in Electrica Muntenia Sud was included in the original contract signed with Enel in 2008 for the controlling stake. At present the Romanian government holds a 23.57 percent stake in Electrica Muntenia Sud, while the Fondul Proprietatea owns 12 percent of the energy company.

Liam Lever, liam@romania-insider.com