Romania May Sell Additional Shares In Romgaz After Bucharest Listing

Romania’s Government might sell further shares in natural gas producer Romgaz after the company’s floating on the Bucharest Stock Exchange, but it will keep the majority stake, according to an official document obtained by MEDIAFAX.

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The Government plans to list Romgaz on the Bucharest Stock Exchange in the second half of 2011, by selling 15% of the gas producer's shares.

The Economy Ministry owns 85% in Romgaz.

According to the document, the ministry might consider selling additional shares, on the local or an international market, after the company's listing, to raise funds for investments.

However, given the strategic position held by Romgaz in the local economy, the state intends to keep the majority stake, the document reads.

The listing of Romgaz, and of other state-owned companies, has been an intention of the local authorities since 2006.

Romania's largest natural gas producer Romgaz reported a preliminary net profit of 508.5 million lei (EUR1=RON4.2564) for 2010, down 3.7% on the year. The company's sales rose 6.2% on the year to RON3.39 billion.

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