Electrica is in talks with Fondul Proprietatea to buy back its minority stakes in distribution subsidiaries Electrica Muntenia Nord, Electrica Transilvania Nord, Electrica Transilvania Sud and in Electrica Furnizare. The fund valued the four minority stakes at 770 million lei (EUR175 million) in its net asset.
Sources close to the talks say the two parties are now negotiating the price, as the fund is trying to get as good a price as possible, even better than the valuation in the net asset, while Electrica is trying to pay less than that valuation.
Fondul Proprietatea owns 22% in each of the three distribution subsidiaries and in the supply subsidiary. Electrica owns the rest. The subsidiaries are not listed. The most valuable stake is the 21.99% in Electrica Muntenia Nord, valued at RON235.6 million. The fund is a captive shareholder and can only sell to Electrica, whose main shareholder is the Romanian government (49%).
The fund plans to use the money to buy back its shares and lower the trading discount.
“Our strategy is to use the cash we have to reduce the FP stocks’ trading discount and our stake ownerships,” Fondul Proprietatea manager told US investors.
Asked about the fund’s most important asset, the 19% stake in OMV Petrom (SNP.RO), Konieczny said the fund still wants to sell some of it so it would have less than 15% left.
He expects to see Hidroelectrica’s initial public offering next year at the earliest and is pessimistic about a similar move by the Complexul Energetic Oltenia (Oltenia Energy Complex). Fondul Proprietatea does not believe CE Oltenia will get an IPO, because it is closer to insolvency than an IPO.
The secondary listing of the fund will be done in London via global depository receipts, a solution Romgaz and Electrica used, as well, Greg Konieczny said. The listing should be done in May.
(English version by Loredana Fratila-Cristescu)