Chinese SGCC Seeks Stake In Romanian Transelectrica - Sources

04.01.2011 By Andrei Circhelan

The State Grid Corporation of China, or SGCC, is interested in buying the 15% stake Romania plans to sell in state-owned power grid operator Transelectrica (TEL.RO), people close to the matter told Mediafax.

The State Grid Corporation of China, or SGCC, is interested in buying the 15% stake Romania plans to sell in state-owned power grid operator Transelectrica (TEL.RO), people close to the matter told Mediafax.

"The Chinese company presented the Economy Ministry with an offer, including a financial one, to buy the entire 15% in Transelectrica (the ministry plans to sell)," the sources said.

Contacted by Mediafax, Economy Ministry officials said the Transelectrica stake sale would "use stock market methods, namely a public offer.

The SGCC ranked eighth last year among Forbes' Top 500 companies of the world, with a revenue of $184.5 billion in 2009. The company has over 1.5 million employees.

The SGCC was founded in 2002 and it is mainly active in the construction and operation of power grids in China.

Romania's Economy Ministry, which holds a 73.6% in Transelectrica, plans to sell 15% in the company on the Bucharest bourse.

Company management also proposed a share capital hike equivalent to 12% of stock, which would unfold in parallel with the listing operation.

Another Transelectrica shareholder is investment fund Fondul Proprietatea (FP.RO), with 13.5%.