Sale of E.ON Romania to Hungary’s MVM is not a done deal, energy minister says
<p>Minister of energy <strong>Sebastian Burduja</strong> said that the sale of the energy supply company E.ON Romania to Hungarian state-owned company MVM will be subject to a strict analysis and highlighted that the deal should not necessarily be approved.</p>

<p>Significant concerns were prompted by the high price paid by MVM, reportedly around EUR 200 million compared to several tens of millions of euros resulting from the validation based on EBITDA multipliers.</p>

<p>Romanian state-controlled companies such as Romgaz and Hidroelectrica were interested, but their offers based on economic valuation could not come close to the price promised by MVM, minister Burduja explained, implying that the deal might be stopped if it breaches national security.</p>

<p>The financial flows involved in the deal would be screened closer, according to a prior press release from the Ministry of Energy.</p>

<p>“We will defend our national interest, and that does not mean that we are not open to collaboration, but the national security of the country will always come first,” Sebastian Burduja said.</p>

<p>One cannot pay 2-3 times or 10 times the fair price and observe the principles of corporate governance, as Romgaz and Hidroelectrica must do, the minister pointed out.</p>

<p>Normally, market sources quoted by <a href="https://www.zf.ro/companii/energie/sebastian-burduja-ministrul-energiei-tranzactia-e-on-mvm-au-22613980?mc_cid=2ff2aefb42&amp;mc_eid=cd1f92f96c" rel="noopener" target="_blank">Ziarul Financiar</a> say, a supply portfolio is valued at 2.5*EBITDA, which would have placed the transaction at several tens of millions of euros, not EUR 200 million – the price MVM reportedly promised.&nbsp;</p>

<p><em>iulian@romania-insider.com</em></p>

<p><em>(Photo source: Facebook/Sebastian Burduja)</em></p>