Romania Pledges To Float 20% In CFR Marfa By Yearend

05.10.2011 By Bostan Radu

Romania's Government will offer a 20% stake of state-owned railway company CFR Marfa by initial public offering, "with a view toward full privatization when market conditions permit," according to the draft letter of intent agreed upon with the International Monetary Fund.

The Government will appoint a legal advisor and an investment bank for the initial public offering.

The company will also lay off around 3,000 workers this year and will hire private management. "Subsidiaries will be integrated into the mother company by end-September," says the letter.

Around 10,600 people currently work at CFR Marfa.

Union leader Iulian Mantescu said last month that CFR Marfa has informed the labor unions and the Labor Inspection about its plan to lay off 3,000 employees as of June 1.

CFR Marfa reported 3.5% wider losses to 354.2 million lei (EUR86 million) in 2010, despite a 4.1% increase in operations. Its rolling stock includes over 42,000 freight cars and more than 900 engines. (EUR1=RON4.0885)