Paul Hastings LLP, a leading global firm, announced today that it advised Citigroup Global Markets Limited, Raiffeisen Bank, and Société Générale Corporate and Investment Banking, as joint global coordinators and joint bookrunners, on the €444.3 million initial public offering of Romania’s leading state-owned electricity distributor and supplier, Electrica S.A. The offering, which closed on Friday 4 July, is the largest ever Romanian IPO, valuing the company at €900 million.
The IPO comprised an offering of shares listed on the Bucharest Stock Exchange (BVB) and GDRs listed on the London Stock Exchange (LSE). The offer consists of 177 million new shares, representing 105 percent of the company’s total number of existing shares. The offering was a key requirement under a framework agreement between the Romanian State and the IMF and EU following their rescue loans totalling €22 billion to the country.
As a result of the IPO, the Romanian State has cut its stake in the company to approximately 49 per cent. The offering included a sizeable strategic investment by EBRD.
Paul Hastings advised the underwriters on US and English law, with Musat & Asociatii advising on Romanian law, and took primary responsibility for drafting the prospectus.
The Paul Hastings team was led by London partner James Cole, assisted by partners Karl Balz (US securities) and Ross McNaughton, and associates Matthew Poxon and Sam Holdsworth.
Electrica was advised by Allen & Overy on US and English law matters while the firm’s associated office in Romania, Radu Taracila Padurari Retevoescu (RTPR), provided Romanian law support. Clifford Chance and its Romanian office, Clifford Chance Badea, provided legal assistance to the depositary, Bank of New York Mellon.
