Should the Romanian State give its consent, Hidroelectrica might close one of the largest energy deals of the past years, per ZF’s aggregate data.
Hidroelectrica also seeks shareholder approval for a loan for further acquisitions in order to diversify its portfolio. End-March 2020, Hidroelectrica’s net liquidity stood at RON2.34 billion.
In early June 2020, Electrica (EL), which is 48.8% owned by the Romanian State, said it intends to form a consortium with Hidroelectrica and Societatea de Administrarea a Particpatiilor in Energie (SAPE) to buy CEZ’s Romanian assets in what could be the largest deal in the energy sector of the last few years.
Hidroelectrica was initially supposed to complete this process on April 14 but the meeting was deferred due to the coronavirus crisis and lockdown measures in Romania.
CEZ had received preliminary bids that assess its local wind power and electricity distribution operations at EUR1.1-1.3 billion. The Czech utility group is seeking to sell its operations in Romania, Turkey and Poland to focus on nuclear capabilities in the Czech Republic.
Hidroelectrica reported a turnover of RON848 million in the first quarter of 2020, down 14.3% on the year, and a net profit of RON430 million, down 13.6% on the year, per the quarterly financial report of Fondul Proprietatea.