Karlsruhe. EnBW Energie Baden-Württemberg AG today declared its interest in acquiring a majority holding in Electrica Muntenia Sud S.A. (EMS), the energy supplier in the metropolitan region of Bucharest. The Romanian Ministry of Trade and Commerce announced its intention to privatise 67.5 percent of the shares in EMS on July 27, 2005.
EnBW sees itself as an ideal suitable strategic partner for the privatisation project and believes that EMS can profit from the reliability, experience and performance potential of the EnBW Group. EnBW fulfils all the technical, financial and operational criteria for the bidding process and possesses comprehensive and wide-ranging experience in the energy industry in both the electricity and gas sectors.
The strategic development of markets in Central and Eastern Europe was and is one of the key elements in EnBW's business strategy. EnBW is convinced that EMS, which supplies energy to over one million customers in the attractive and dynamic region in and around Bucharest, is an optimum fit for this strategy. In particular, EnBW can contribute its experience in increasing performance ratios and improving customer services to the targeted alliance, thereby benefiting EMS and its customers as well as the regional economy.
"Romania has become an attractive location for investments. We particularly welcome the reforms implemented by the Romanian government which have created a strong and efficient energy industry", says Dr. Amir Ghoreishi, General Executive Director for Group Strategy and M & A. "We are extremely interested in playing an active role in supporting the positive development of Romania in general and in strengthening the energy sector in particular. We also believe that this project ties in with the efforts of Romania in connection with future membership of the EU."
EnBW is the third largest energy company in Germany with over 5 million energy customers. In financial 2004, the company posted sales revenues of 9.8 billion euros and sold around 100 billion kWh of electricity and 83 billion kWh of natural gas. Last year, EnBW recorded an increase of 1.4 billion euros in earnings before interest and taxes (EBIT), the highest earnings growth in the history of the company. EnBW currently employs around 18,000 people.