Funds in the running for EFACEC

Three funds are in the running to buy 71.73% of the Portuguese electrical and transport systems company Efacec.

The Portuguese Oxy Capital, the US Oaktree and the German Mutares are the three funds, but they do not intend to develop the business long term under current respective business models according to Jornal de Negócios. A proposal has also been received from the Portuguese industrial group Agrupamento Visabera-Sodecia.
Only the last proposal on the table from Visabera-Sodecia involves developing the company long term and preserving the 2,000 jobs.
As to the various models on the table, one involves a prior condition for a Special Revitalisation Plan to be drawn up, while the other two foresee the company being sold after five years.
The Government so far says that it does not want to speculate and has confined itself to stating that there are “several interesting proposals” and that the government would “choose the best one would offer the best conditions for the company to maintain its industrial project and develop it, and build on its strengths and specialisations, particularly EFACEC products”.
The Minister of the Economy, António Costa Silva said the reprivatisation of the company would be a good decision based on the future sustainability of one of the largest technology companies in the country and promised a concrete decision by the Council of Ministers shortly.
The Special Revitalisation Plan, if agreed upon, would involved a capital injection of €100 million from Portugal’s Development Bank Banco de Fomento which would involve clearing the company’s bank debts which stand at about €200 million. An announcement is expected to be made next week.

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