Romania Lowers Expectations For Tarom Privatization, Eyes EUR7.4M IPO
Romania's government has lowered expectations for its planned sale of a 20% stake in state-run airline Tarom, saying that it now estimates to raise up to EUR7.4 million in the initial public offering, a significant step down from a minimum of EUR20 million previously envisaged.
The Transport Ministry, majority owner in Tarom, last year initiated the privatization proceedings for the airline and hired a consortium made of Carpatica Invest and Swiss Capital to broker the IPO.
The ministry estimated at the time it would raise between EUR20 million and EUR60 million. However, a new document drafted by the ministry early this year indicates the airline is still very much affected by the global financial crisis and the revenues from selling a 20% stake are not expected to exceed EUR7.4 million.
Tarom is one of the companies monitored by the International Monetary Fund under a EUR3.5 billion precautionary deal signed in 2011. At the latest negotiations with the IMF, the government pledged to sell a minority stake in the company by end-April 2012.
Citește și
2 min
Ștefan Stan
2 min
Ștefan Stan
2 min
Cristina Roșca