ECONOMICS - October 22nd 2004
The week of gas distribution privatization reached the culmination point when the contract with Ruhrgas-E.on for Distrigaz Nord has been signed. Approximately 2 million Romanian families will be supplied by two of the leaders in the European Union economy.
by ADRIAN N. IONESCU
TRANSACTION TERMS
Ruhrgas will pay 304 million euros in order to become the main shareholder at Distrigaz Nord, an unexpected good price, say the analysts. In a first phase, Ruhrgas will buy 30% of the stocks with 125 million euros and will pay some other 179 million euros through a capital increase, which will bring another 21% of the companyâs shares. This way, Distrigaz Nord has been evaluated at 416 million euros, and Ruhrgas will also cover a flat financial debt of 13 million euros.PROSPECTS
The French at Gaz de France, as well as the Germans at Ruhrgas invoked their good relationship with the natural gas supplier, Gazprom, which lost the race for Distrigaz Sud, because it launched a lower financial offer. The Russians offered to fulfill a dream of the Romanian authorities: a supplying contract on a long period of time, so at lower prices. Romanian official sources say that this is not in the stateâs concern from now on, and the new owners of Distrigaz have to take care of this business. Their negotiating force could be even higher. In the context, the same sources speak about the experience of the difficulties the Romanian representatives had to face in order to get in Alexei Millerâs office. Ruhrgas owns approximately 7% of the Gazprom stocks and the specialist say that, in time, using share exchange, the Russians might get to own some of the shares of the Romanian natural gas distribution companies.OWNER
Ruhrgas is one of the greatest companies in Europe, having 75 years of experience in the natural gas distribution area. It has a pipe system of more than 11,000 km. Ruhrgas works with great gas suppliers in Holland, Norway and Russia. In 2003, the Ruhrgas turnover has been 12.1 billion euros, the flat profit has been 909 million euros, and the total gas delivery has summed 58 billion cubic meters of natural gas. The market quotation of Ruhrgas E.on in Germany is approximately 57%.Translation : SORIN BALAN