Siemens in consortium bid for Electroputere Craiova

The Romanian State is preparing to sell the majority stake in the locomotive producer Electroputere Craiova to a consortium of investors that includes Siemens, after twice failing in its bid to privatise the company through a strategic investor, sources close to the discussions told Ziarul Financiar.

Representatives of the State Asset Resolution Authority (AVAS), controlling 62% of Electroputere stock, were in talks with the German group Siemens last week, together with the Hungarians from Horvath Holding, Energobit Cluj-Napoca and the Greek firm DAB. These players might make up a consortium to take over the company’s assets. Siemens, one of the world’s largest industrial groups, is only interested in acquiring the locomotive unit of Craiova, and under certain terms.

“The Electroputere privatisation might be concluded by the end of October, with the privatisation strategy to be published during the following period. After two failed tenders, the state is preparing to draft a special law, through which Electroputere would be directly handed over to a consortium of investors which would take over all its assets,” the above-mentioned sources stated.

The transaction will have a powerful impact on the entire Romanian railway sector, as well as on other markets.

Market sources state that Siemens’ interest in Electroputere, which has been expressed in principle, depends on the Romanian company’s situation with regard to its contracts. “At this moment, there is a medium and long-term strategy with regard to the modernisation of the railway sector. However, the business plans of CFR Marfa and CFR Calatori are also important, so as to see how Electroputere can be loaded with orders from these companies,” the quoted sources stated. Siemens is currently the largest supplier of the Romanian railways.

So far, the Romanian state has found no investor interested in taking over the entire portfolio of Electroputere Craiova, which is made up of four business areas – locomotives; electrical engines and rotative machines; transformers (TRAFO); medium and high voltage electrical devices; as well as auxiliary activities, such as foundry works, tool-making and utilities.

According to the latest information, the consortium that will acquire Electroputere will be made up of Siemens, the Hungarian company Horvath Holdings (interested in the electrical engines and rotative machines production unit), Energobit Cluj (interested in taking over TRAFO and the medium and high voltage machinery unit) and Greek firm DAB (interested in TRAFO and the tool-making unit).
adrian.mirsanu@zf.ro