Only two investors qualified for the next stage of the race to privatize Romanian state – owned railway freight company CFR Marfa, in the second privatization attempt. Grup Feroviar Român GFR and the association Transferoviar Grup & Donau Finanz GMBH went into the next stage of the privatization, and OmniTRAX Inc. failed to do, as the envelope it had submitted did not include the preliminary offer, nor the required comments over the sale contract.

The same three bidders submitted offers in the first take of the privatization, but Romania's Transport Ministry rejected all three in the previous pre-qualification stage on May 15, without mentioning the reasons. For the second try at the bid, the Ministry 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. However, the changes failed to attract any new bidders .

The privatization commission will organize a session of 'clarifications' with the two companies still in the race, and their final offers should be submitted by June 19, at 12,00. On June 20, the winner will be announced after opening the 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.

Transferoviar Group is a Romanian company controlled by businessman Calin Mitica, while Donau-Finanz GmbH & Co KG Austria is an investment fund with over EUR 2 billion in assets. Donau-Finanz was also a last stage qualified bidder for the Bulgarian railway company BDZ.

GFR, owned by Gruia Stoica and Vasile Didilă, is the second largest railway freight operator in Romania, after state – owned CFR Marfa. In 2011, the company had a turnover of some EUR 180 million. GFR too was shortlisted in the race for BDZ Cargo in Bulgaria.

editor@romania-insider.com