"Servtrans did not make the bid to acquire MAV Cargo in its own name. One of our partners made the offer, in collaboration with our company," added the Servtrans official. International Railway Systems S.A Luxembourg, owner of Servtrans, made an offer for MAV Cargo's privatisation through MC Solution Consortium, according to the Secretary General of the Romanian Railway Industry Association (RIA), Stefan Roseanu.
"For now, we are planning to consolidate our position in Europe, especially since we are operating on a new market. That is why we wish to buy similar companies in Europe," said Buruiana.
The Hungarian company received 12 non-binding offers, with interested parties including Grampet, owner of, among others, Romanian railway companies Grup Feroviar Roman and CFR Marfa. MAV Cargo announced that the main criteria in the first stage of the privatization process will be the price offer and business plans to improve the company's efficiency. Hungarian authorities will select the best five offers by mid-August, and chosen companies will make binding offers by October 19.
MAV Cargo is valuated at some €280-320 million (HUF 70-80 billion). It employs 3,200 people, and had a 2006 turnover of €372 million (HUF 93 billion) and profits of approximately €11.21 million (HUF 2.8 billion). Servtrans forecasts €32.4 million worth of business, cargo transportation and ancillary activities, representing 99 percent of the business in 2007, 20 percent more than last year, when it registered €27 million. The company plans to invest some €50 million in cars and rolling stock, as well as modernizing existing engines.
