12 April 205 – LAWFUEL – The Law News Network – Allen & Overy has advised Banc of America Securities Limited in connection with the privatisation of S.C. Electrica Moldova, S.A. and S.C. Electrica Oltenia, S.A., two Romanian electricity distribution companies.
On 4 April 2005, E.ON Energie A.G. signed the Privatisation Agreement with S.C. Electrica S.A. to purchase a 51% stake in S.C. Electrica Moldova, S.A. for â‚¬100 million.
Subsequently, on 5 April 2005 ÄŒEZ, a.s. signed the privatisation agreement with S.C. Electrica S.A. to purchase a 51% stake in S.C. Electrica Oltenia, S.A. for â‚¬151 million.
It is expected that both transactions will be closed by 30 June 2005.
The Romanian Ministry of Public Finance selected a consortium led by Banc of America Securities Limited and including Central Europe Trust Company Ltd. as privatisation advisor. Other advisors within the consortium included BDO Conti Audit (local accounting and tax) and WS Atkins plc. (international environmental).
Allen & Overy led the legal team as international legal advisor, with Nestor Nestor Diculescu Kingston Petersen advising as Romanian legal advisor. The Allen & Overy team was led by Bratislava-based partner Hugh Owen.
Commenting, Hugh Owen said: “All parties commented favourably on the transparency and speed of the privatisation process. We are pleased to have contributed to this success through our experience in previous privatisations elsewhere in C&SEE in this sector – we can add value to large and complex transactions in countries such as Romania, through our established relationships with local firms, with whom we worked very effectively on this deal.”