The fund, minority holder in Hidroelectrica, has called a shareholder meeting on Hidroelectrica’s listing, but the ministry voted against an immediate floating, citing legal obstacles.
The ministry said a government ordinance to set up two national energy champions which would include Hidrolectrica was still standing, despite an announcement that the plan was discarded.
In addition, the ministry argued Hidrolectrica is involved in litigations initiated by Fondul Proprietatea and unions still pending in courts in relation to the setting up of the two energy champions.
Finally, Hidroelectrica’s strategic position in the economy calls for a privatization strategy sanctioned by the government, the ministry said.
“Taking into account the provisions of the letter of intent with the International Monetary Fund, the representatives of the state have requested the Board of Directors to draft an assessment and opportunity study regarding the listing of Hidroelectrica and present it to the shareholders,” Fondul Proprietatea said.
“Hidroelectrica’s listing will be on the agenda of the next extraordinary meeting following the approval of the privatization strategy by the Romanian government,” it added.
According to the latest memorandum of understanding with the IMF, 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.
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.