Fondul Proprietatea ponders selling stake in Hidroelectrica
Romanian Investment fund Fondul Proprietatea (FP) ponders selling its minority stake in the Romanian power producer Hidroelectrica after a conflict with the Energy Ministry, which is the main shareholder in the company.
FP said that it is "strategically analyzing" its options regarding its 20% stake in the power producer, according to a notice sent to the Bucharest Stock Exchange. The fund has hired the Citigroup and UBS multinational financial groups as consultants "in connection with the planned transaction".
Fondul Proprietatea has expressed indignation at the removal of Oana Truta from Hidroelectrica’s Board of Directors. Truta was the fund’s representative in the board. The Energy Ministry decided to revoke her during the General Meeting of Shareholders held on August 31. The decision was “unfounded and abusive”, according to the fund.
The stake in Hidroelectrica accounted for almost one-third of the net asset value of FP at the end of June. It was estimated at over RON 3.38 billion (EUR 735 million).