The Romanian state, which owns 80% of Hidroelectrica, approved the company’s plan to bid for CEZ’s assets either on its own or in consortium.
Romanian state-owned energy utility group Electrica (EL.RO) said early June it was exploring the possibility of bidding for the Romanian assets of CEZ in consortium with Hidroelectrica and the state administration of energy sector participation (SAPE).
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 also received shareholder approval to seek a bank loan in view of the acquisition.
Minority shareholder Fondul Proprietatea (FP.RO), which owns 20% in Hidroelectrica, said earlier this week it opposed the company’s plan to pursue a major acquisition, saying it should focus on its stock market listing. It said involvement in a major deal such as acquiring CEZ’s local capabilities risked delaying Hidroelectrica’s IPO or even dilute the company’s overall value.
Before the coronavirus pandemic, Romania planned to list around 20% of Hidroelectrica in 2020, which has since been delayed. Meanwhile, the Romanian parliament adopted a bill banning the sale of any state assets for a period of two years.