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Romania: Hidroelectrica will not be listed in 2018

15.Aug 2018.

Johan Meyer, Fund Manager at Fondul Proprietatea (FP), said that the fund does not expect Hidroelectrica’s initial public offering (IPO) to happen in 2018, as the process involves a series of steps, including the selection of a supervisory board with a full mandate.

Meyer said that Fondul Proprietatea has been actively engaged in the process, but for certain reasons it did not take place and such a process needs political willingness from the highest levels in order to go forward., adding that a possible listing would not be affected by the current market conditions, as it is an interesting asset for investors.

Romania’s former Minister of Energy Toma Petcu said in September 2017 that the Government is interested in accelerating the IPO of Hidroelectrica. However, the Government has changed since then, and there were repeated clashes between FP and the Romanian authorities over corporate governance at companies where they are both shareholders.

Fondul Proprietatea’s portfolio includes 22.6 % of listed companies and 63.4 % of non-listed companies. The highest share it has in a public company is 15.01 % in OMV Petrom, and for non-public companies, 33.05 % at electricity producer Hidroelectrica.