Russian investment bank VTB Capital Plc has included Romania in its “several hundred million euros” investment plan in the Balkans, according to CEO Atanas Bostandjiev, quoted by Bloomberg.

VTB Capital is interested in the planned sale of the Romanian railway's freight division, CFR Marfa. It is also looking at planned bank sales in Serbia, and at similar deals in Slovenia and Croatia.

VTB Capital has opened an office in Bulgarian capital Sofia, hoping to expand in SE Europe. Former Bulgarian Finance Minister Milen Velchev was named chief executive officer. The new office joins existing offices in London, Hong Kong, Singapore, Dubai, New York, Vienna and Kiev.

The investment bank will be looking at privatization deals planned in Bulgaria, Serbia and Romania.

Six months ago, VTB Capital bought an 80 percent stake in Bulgartabak, Bulgaria’s biggest tobacco company, for EUR 100 million. The investment bank is also pondering the acquisition of Bulgarian landline operator Vivacom.

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: CFR Marfa)