By Andrea Hargraves 
Parpública has received expressions of interest from eight national and international candidates to reactivate Efacec. After the initial selection, submission of binding proposals begins.
“Following the new reactivation of 71.73% of the share capital of Efacec Power Solutions, SGPS, SA, Parpública – Participações Públicas (SGPS), SA reports that it has received, within the specified deadline, expressions of interest from eight employees of local and foreign entities referred to in the company statement.
According to the memorandum, after the initial selection, the stage of submission of binding proposals by potential interested parties will begin.
The deadline for submitting proposals ended on Monday.
On October 28, the executive announced that the sale of Efacec to DST Group had not been completed “because all conditions necessary for the execution” of the sale agreement had not been met. On the same day, DST confirmed the commitment of all parties involved in the purchase of Efacec, stating that it was not possible to verify the terms of the company’s sale agreement.
On November 21, a Cabinet Resolution published in the newspaper Diario da Repubblica ended the process of selling Efacec shares to DST, arguing that “the best solution to achieve the objectives set for this direct sale is to terminate this process, starting from now to prepare a new process, by coordinating between The Ministry of Finance and the Ministry of Economy and the Sea.
“At the same time”, and “in view of the evolution of the economic and financial situation reported by Parpública – Participações Públicas, SGPS, SA and Efacec, according to the documents sent by Parpública regarding the reactivation that has taken place”, decided that it is “considering the adoption of restructuring measures with a view to Preserving the operating value of the group and the favorable conditions to make said sale possible.
The certificate also established that Parpública “proposes restructuring measures to the Government, including possible solutions, duly evaluating and, if applicable, relevant legal instruments, which prove necessary to the completion of the sale, even if accompanying it, in order to enhance the value of The company, and improving the financial effort of the state, which may lead to adaptations to the structure of the final deal that will be implemented.
The government also authorized Parpública “to ensure the maintenance of the company’s activity, specifically in terms of treasury support, to enable the conditions that allow the implementation of the reactivation operation, and to provide it with appropriate financial means in line with the information” that was provided.
Finally, the executive decided that “until the physical settlement of the purchase and sale in direct sales is made, the Council of Ministers may suspend or cancel the reactivation process, provided that it is justified by reasons of public interest,” adding that, in this case, “the bidders are not entitled to Potential persons, for any of these facts, shall have no remedy or compensation, regardless of their nature.”