REG - Electrica S.A. Fondul Proprietatea - Cease of Negotiations with FP <Origin Href="QuoteRef">FP.BX</Origin> <Origin Href="QuoteRef">ROEL.BX</Origin>

Societatea Energetica Electrica SAAnnouncement

29/03/2016 07:07

RNS Number : 3231T
Electrica S.A.
28 March 2016
To:  Bucharest Stock Exchange
 Romanian Supervisory Authority
 London Stock Exchange (LSE)
Current report in compliance with the Romanian Capital Market Law no. 297/2004 and CNVM Regulation no. 1/2006 onissuers and operations with securities 
Report date: 28 March 2016
Company name: Societatea de Distribuie i Furnizare a Energiei Electrice - "ELECTRICA" S.A.
Headquarters: 9 Grigore Alexandrescu Street, 1st District, Bucharest, Romania
Phone/fax no: 004-021-2085999/ 004-021-2085998
Fiscal Code: RO 13267221
Trade Register registration number: J40/7425/2000
Subscribed and paid in share capital: RON3,459,399,290
Regulated market where the issued securities are traded: Bucharest Stock Exchange (BVB) and London Stock Exchange (LSE)
Significant events to be reported:
Negotiations with Fondul Proprietatea (FP) regarding a potential acquisition of the participations held by it in the distribution and supply subsidiaries
According to the mandate given by the Extraordinary General Meeting of Shareholders (EGMS) through resolution no. 3 of 10 November 2015, the Board of Directors of Societatea de Distribuie i Furnizare a Energiei Electrice - "ELECTRICA" S.A. (Electrica) was empowered to negociate with Fondul Proprietatea (FP) in relation to a potential acquisition by Electrica of the minority participations held by FP in the following subsidiaries: FDEE Electrica Distribuie Muntenia Nord S.A., FDEE Electrica Distribuie Transilvania Sud S.A., FDEE Electrica Distribuie Transilvania Nord S.A. and Electrica Furnizare S.A. (Transaction).
Electrica hereby informs its shareholders and investors that the negotiations between Electrica and FP in relation to the Transaction were ceased, since no consensus was reached regarding the Transactions' price.
Electrica's last firm nonnegociable price, from 24 March 2016, was of RON 790 million (equity value), in line with the firm offer received from FP in March 2015, and with the recent discussions. Today, 28 March 2016, FP sent Electrica a letter through which it declines this offer. We mention that FP asked for a price of RON 875 million (equity value).
Electrica always aims to satisfy the interests of its shareholders and investors. In order to ensure an effective communication, Electrica will inform shareholders and investors, as per the mandate given by the EGMS, on the economic argumentation supporting its offer.
General Manager
Iuliana Andronache

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