Fondul Proprietatea, the biggest investment fund in Romania, is still discussing the sale of its most valuable stake, namely 20% of state-controlled power producer Hidroelectrica, with several interested parts in wider areas, according to the fund’s manager, Johan Meyer.
“We are not in the point where we need to make an announcement, but a process is ongoing. There is clearly great interest because this is not only Fondul Proprietatea’s crown jewel, but also Romania’s,” Meyer said, according to local Agerpres.
He added that a company such as Hidroelectrica, which produces 100% hydro power is an extremely valuable asset.
Meyer also said that the Government now has a chance to restart the process of listing Hidroelectrica by selecting a new investment consortium to manage the IPO, after the previous consortium’s mandate was not extended.
Hidroelectrica made a net profit of EUR 292 million in 2017, the highest in the company’s history. The 20% stake that Fondul Proprietatea holds in Hidroelectrica was valued at some EUR 760 million at the end of March this year, representing about 36% of the fund’s net asset value, of EUR 2.1 billion (as of July 31, 2018).