Romania’s Government wants to list hydropower company Hidroelectrica this year and sell 10-20% of the company’s shares in an initial public offering (IPO), Hotnews.ro reported.
This operation would not mean “the privatisation of the company” and will be a combination of issuing new shares and selling part of the shares the state holds in the company.
Thus, the money raised in the IPO will be split between the state, which controls 80% of Hidroelectrica’s shares and the company.
Investment fund Fondul Proprietatea, which holds a 20% stake in the company, could also be interested in selling part of its shares.
“Today (January 30), I had a discussion with the European Bank for Reconstruction and Development. Next week, I will have a more detailed one. I think the EBRD will be involved in this listing process,” said the minister. He added that the IPO will consist of a stake of up to 20% of the company’s shares.
“We want to make the listing this year. The listing, I repeat, you should not think about ‘sale’, or ‘privatization’ - but a listing of 10%, 15%, maximum 20% on the stock exchange. It will give additional liquidity on the stock exchange, it will have, I think, much better an effect,” said Virgil Popescu. Hidroelectrica is the most valuable Romanian company still controlled by the state.
(Photo: Hidroelectrica Facebook Page)
Hidroelectrica, the biggest power producer in Romania, 80% controlled by the state, has launched the procedure for...