The company will discuss the proposal in stockholders’ meeting November 10 and should the change be approved, Energy Ministry will have three members in the board instead of two, with four independent members, instead of three.
“I feel that more beautiful minds should do no harm,“ said Bogdan Badea, secretary of state with the Energy Ministry.
“Should the proposal be approved, a shortlist of candidates will be drafted. We must improve the activity, stress upon the technical structure which has diminished lately,“ added Badea.
The proposal of the Energy Ministry, which owns a 48.7% stake in Electrica, comes among tensions between the ministry and the company’s board, Electrica’s board members complaining of state interference in the company’s management.
During stockholders’ meeting November 10, it will also be approached the proposal of a group of stockholders with a 15% in Electrica on the company resuming negotiations with investment fund Fondul Proprietatea to take over minority stakes the fund holds in the company. Early this year, Electrica’s previous negotiations with the fund have failed on price disagreements.
The main stake behind this move would be a boost of the profit distributed to stockholders, considering the return of an investment takes years. Fondul Proprietatea evaluated its minority stakes at almost RON770million in its net assets.
Electrica is a holding company for a group which comprises four electricity distribution subsidiaries, one supply company and three service firms. The Romanian government holds a 48.8% interest in Electrica, while EBRD holds an 8.66% stake.
For 2015, Electrica expects sales of RON5.662 billion and a net profit of RON460.7 million.
In 2014, Electrica registered, on a group level, a turnover of RON5.044 billion and a net profit of RON401.4 million, of which RON287.84 million represents net profit attributable to shareholders.
(English version by Manuela Panescu)