The auction will be preceded by negotiations with prospective investors, according to an official document obtained by Mediafax Monday.
CEn Hunedoara will increase its share capital though a private placement via the issuance of new shares.
A draft government decision put up for public debate in January stated that the Economy Ministry planed to launch a public offering to double the share capital of CEn Hunedoara with a view to floating the company on the Bucharest Stock Exchange.
CEn Hunedoara has a share capital of 203.39 million lei (EUR46.4 million). The company will issue new shares corresponding to 105% of the existing capital, which later will be offered for subscription on the stock exchange, the document noted.
Founded in 2012 following the merger of state-run thermal power plants Deva and Paroseni, CEn Hunedoara has an installed capacity of 1435 megawatts. The holding covers about 5% of Romania’s electricity production.
Under a EUR3.6 billion loan agreement with the International Monetary Fund, Romania has pledged to sell a majority stake in CEn Hunedoara by May or June this year.
In its latest letter of intent to the IMF agreement the government said a decision on CEn Hunedoara’s privatization would be reached by the end of February.
If no investors are found, the power holding will go insolvent, the document said. (EUR1=RON4.3652)