Hidroelectrica, the most valuable company controlled by the Romanian state and the biggest electricity producer in the country, has started the procedures for taking over the assets of Czech group CEZ and Italian group Enel in Romania.
The company has asked for the shareholders’ approval to hire consultants to help it with this process, Wall-street.ro reported. The General Shareholders Meeting is scheduled to take place on December 12. Hidroelectrica is also looking to get legal assistance for these transactions.
The company is also looking to take over several assets of insolvent company UCM Resita, which will be used for maintenance and refurbishing operations. Hidroelectrica will also ask for the shareholders’ approval to offer sponsorship to the Marie Curie Pediatric Emergency Hospital in Bucharest, the University Emergency Hospital in Bucharest, the SMURD Foundation and the National Foundation for Science and Art.
Both CEZ and Enel are looking to sell their assets in Romania, which include power distribution networks, electricity supply operations and large wind parks. Hidroelectrica’s minority shareholder, Fondul Proprietatea, which holds a 20% stake in the company, commented earlier this year that taking over the assets of CEZ or Enel wouldn’t bring any value to the company. However, the Romanian state, which holds 80% of the company, has the final say.
Other state-controlled entities in Romania are also interested in the CEZ and Enel assets.
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