Romania’s Government plans to launch an initial public offer (IPO) for the sale of a 10% stake in hydropower producer Hidroelectrica and a 15% stake in coal and power company CE Oltenia, according to the 2019-2022 Convergence Program, passed by the Government on May 8.
The offers would include the issuing of new shares by the two companies, the document states, according to local Agerpres. The document also points that the Energy Ministry continues the restructuring process to make the activity of CE Oltenia and National Uranium Company more efficient, as well as the reorganization of the Hunedoara Energy Complex.
Investors have long awaited Hidroelectrica’s IPO. After repeated delays, investment fund Fondul Proprietatea (FP), which holds a 20% stake in the company, indicated in 2017 that it was considering selling its stake in the hydropower producer. In September 2018, FP said that it had talks with “numerous interested parties” on a potential sale of its stake in Hidroelectrica.
Under the Government’s latest plans, Hidroelectrica would be included in an investment and development sovereign fund (FSDI), under a revised draft bill showed on March 8, this year. The opposition criticized the sovereign fund’s architecture claiming that it would allow the Government to sell stakes in key state companies under discretionary procedures.