Nuclearelectrica wants to subscribe 89,000 shares with a face value of RON100 issued by Hidro Tarnita SA company as part of a capital increase operation. Thus, it will become part of the consortium set to fund one of Romania’s most extensive energy projects, namely the construction of Tarnita hydropower station, set to improve the safety of the national energy system.
The project is estimated at over EUR1 billion and cannot be completed without external funding. So far, Chinese investors have voiced their interest in the project.
Another project Nuclearelectrica will get involved in is the construction of the submarine electrical cable between Romania and Turkey. Nuclearelectrica would invest EUR2 million to become a stakeholder in this project as well.
Both investments are set to be included in the revenue and expense budget for 2014, and the decision will be made during the general shareholders’ meeting of March 11.
Nuclearelectrica is already involved in a major project, namely the construction of reactors 3 and 4 of Cernavoda station, a project put at 3 to 6 billion euros, for which it hasn’t found any partners, yet.
Also, the company should invest over EUR1 billion over the next 10 years to retool the first reactor.
The company was listed on the Bucharest stock market in October 2013 in the wake of a public offering which raised EUR63 million. Since floatation, the company’s capitalization has dwindled by EUR120 million, to less than EUR600 million.
(English version by Catalina Apostoiu)