Electroputere goes to Saudi company

Saudi company Al-Arrab has won the tender for the acquisition of the majority stake in locomotive producer Electroputere Craiova, according to the announcement made by the State Assets Resolution Authority (AVAS). The company will now negotiate the conditions of the privatisation contract with the AVAS, with assistance from law firm Bostina si Asociatii (Bostina and Partners). According to market sources, Al-Arrab’s made an unexpected offer for Electroputere of around 120 million euros, with a final price of around 2.3 million euros paid to AVAS, for the 62.82% stake. The company has undertaken to come up with a further approximately 57 million euros (37million for the working capital and 20 million euros for investments) and to pay Electroputere’s approximately 60 million-euro debt. The surprisingly high value of the Saudi company’s offer is explained by the fact that Saudi Arabia has ongoing infrastructure projects and railway construction works worth over 9 billion euros. Al-Arrab is one of the international consortiums selected to carry out these projects.