Loading ...Three companies have submitted bids for consultancy services for the privatization of CFR Freight, Romanian railway operator, with the winner likely to be announced in mid-November, representatives with the Auction Commission of the Transport Ministry announced.
The commission on Wednesday opened the three offers and will analyse them on October 29.
The commission on Wednesday opened the three offers and will analyse them on October 29.
The winner will issue the strategy and supervise the way in which CFR Freight’s privatization is conducted, with the announcement for the beginning of the process likely to be published at the beginning of 2008 and the contract to be signed at the end of 2008.
“The consultant will decide if the company will be privatized on the stock exchange, if a 51-percent stake will be sold through another procedure or the entire company. What CFR Freight is doing is hire an evaluator before launching the privatization announcement, in order to know exactly which is the fair price that has to be required,” CFR Freight general manager Liviu Bobar explained.
The company has a market value estimated by railway operators at between 500 and 1.5 billion euros being one of the most important freight railway operators on the European market with a 5 percent share.
Standard&Poor’s Rating Services on Tuesday reduced from ‘B’ to ‘B minus’ the rating granted to the company for the long-term debts, with the reason being the low level of liquidities, before buying back some bonds of 120 million euros with a due date on December 10. Moreover, the agency announced that the rating granted to CFR Freight is under surveillance, with negative perspective, where it was placed on August 10, 2007.
CFR Freight was set up in 1998 after reorganization through division of the Romanian Railways National Company and having the status of share company. Its core object is freight transport in Romania and abroad. The company includes 987 locomotives some 55,000 waggons structured on 23 different series and 2 ferryboats with 12 tone dead-weight each.
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