“We strongly believe that Hidroelectrica and Nuclearelectrica are ready to come to the market and that this process should commence as soon as possible. We are confident that IPOs for Hidroelectrica and Nuclearelectrica can be very successful, attracting more investors to the market and enhancing the value of the portfolio of Fondul Proprietatea”, said Greg Konieczny, Fund Manager of Fondul Proprietatea.
According to the latest memorandum of understanding with the International Monetary Fund, Romania’s government, through the Ministry of Economy, pledged to offer minority stakes in Hidroelectrica and Nuclearelectrica with a view towards generating sizable additional investment in the energy sector, Fondul Proprietatea said in a statement.
It said the listing of the two companies’ shares would benefit all stakeholders involved including the companies, the government, the Bucharest Stock Exchange, Fondul Proprietatea and its shareholders, “and the Romanian economy at large.”
The shareholders’ meetings for Hidroelectrica and Nuclearelectrica should take place within 60 days from the requests submitted by Fondul Proprietatea.
The Economy Ministry owns 80.05% in Hidroelectrica and 90.28% in Nuclearelectrica, while Fondul Proprietatea holds stakes of 19.94% and 9.72%, respectively.
The ministry announced plans to sell minority stakes in the two companies, but hasn’t set a date for the IPOs yet.