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Romanian Invest Fund Proprietatea To Contribute EUR10M To Pwr Distributors’ Shr Cap Hikes

Romania’s investment fund Fondul Proprietatea will contribute some EUR10 million in the share capital increases of unprivatized power distribution branches of former monopoly Electrica, to keep its 22% in the companies, fund general manger Dana Lulache told a news conference Wednesday.
Romanian Invest Fund Proprietatea To Contribute EUR10M To Pwr Distributors’ Shr Cap Hikes
24 sept. 2008, 14:57, English

"The money will be used to fund investments, develop distribution networks and build new networks,” Lulache said.

She added the capital increase will be operated at the face value of shares.

Lulache said the power distributors’ capital hikes are good investments for the fund.

Romania kept majority stakes in electricity distributors Electrica Muntenia Nord, Electrica Transilvania Nord and Electrica Transilvania Sud, and sold five regional distributors to Italy’s Enel, Germany’s E.ON and Czech CEZ.

Fondul Proprietatea was set up in December 2005 to compensate Romanians for the non-return of confiscated property during the communist era. The fund is 80% state-owned, and the remainder is distributed among the people whose property was illegally confiscated under communism.