Fondul Proprietatea – Government commits to IMF to continue reform of state-owned enterprises
The IMF mission to Romania ends today and apparently the government and the IMF agreed for a two months extension of the agreement. According to the media, in its discussions with the IMF the government agreed to sell CE Oltenia to a strategic investor after in a first phase a 15% stake would be sold on the stock exchange until the end of October. A 10% stake in Hidroelectrica would be listed as soon as the company exits insolvency. The process to appoint independent management will continue. The state would sell its majority stake in Electrica, the majority shareholder of power supply and distribution companies Electrica Muntenia Nord Distributie, Electrica Transilvania Nord Distributie, Electrica Transilvania Sud Distributie and Electrica Furnizare until the end of November.
The new commitments of the government indicate that the process of reform and listings of state-owned enterprises, part of which in Fondul Proprietatea’s portfolio, will continue, which we perceive as positive for Fondul Proprietatea.
Antibiotice – US Food and Drug Administration audited the production flows with positive results
According to a release on the stock exchange, the US Food and Drug Administration (FDA) performed an audit at the Romanian drug producer Antibiotice (ATB) in order to extend partnerships on the US market. The audit was finalized positively, with no observations from the FDA. This follows another audit performed in December by two major distributors on the US market, which also concluded favourably. Antibiotice exports on the US market Ampicillin, a penicillin which fights bacteria, Nistatine, used for infections and will initiate in 1Q 2013 the export of Nafciline also used for infections.According to the release, during 2012, exports reached some USD 20 mn, up 4x compared to 2007, which represents some 23% of our estimated 2012 turnover. For 2013, exports are expected to increase by 17% yoy. At the moment, ATB exports its products in more than 60 countries.
