5 April 2005 – German utility E.ON announced Monday that it had signed a privatization agreement with the Romanian government in Bucharest, paving the way for E.ON’s acquisition of a majority stake in Romanian regional utility Electrica Moldova.
Under the agreement, E.ON Energie AG will purchase a 24.62 per cent shareholding and immediately boost this to 51 per cent by raising the company’s capital stock.
With its portfolio of 1.3 million customers and electricity sales of around four billion kilowatt hours, Electrica Moldova, which is based in the north-eastern part of Romania, has an 11 per cent share of the country’s wholesale market. In 2003, Electrica Moldova recorded sales of €203m ($295m).
The acquisition is a further milestone in the implementation of the E.ON Group’s strategy of growing its Central and Eastern European business. In October 2004, E.ON Energie purchased a stake in the Bulgarian utilities Gorna Oryahovitza and Varna. In the same month, E.ON Ruhrgas acquired a shareholding Romanian gas utility Distrigaz Nord.
Wulf H. Bernotat, Chairman of E.ON AG’s Board of Management: “Purchasing a controlling interest in Electrica Moldova further consolidates our market position in Central and Eastern Europe. It also gives us unrivalled scope for leveraging cross-border synergies in the region.”