Croatia: Morgan Stanley-Sberbank-Unicredit to advise Power utility HEP on IPO, HEP eyes acquisitions in SEE region

7. April 2015. / SEE Energy News

Croatian state-owned energy utility HEP will contract Morgan Stanley, Sberbank and UniCredit as consultants on plans for an initial public offering (IPO). The proceeds from the IPO would be used to strengthen HEP’s position on the local as well as on foreign markets, especially in the region.

The government’s stake in HEP should drop to 80 after the IPO, during which the number of the company’s shares will increase by 25%.

Last week, Croatia’s economy ministry stated on press conference that the government will consider an option for an IPO of up to 25% of HEP.

The proceeds from the IPO would be used to strengthen HEP’s position on the local as well as on foreign markets, especially in the region confirmed HEP spokesman to Serbia Energy magazine.

Also last week, local media quoted economy minister Ivan Vrdoljak as saying that HEP should be eyeing acquisitions in Slovenia, Bosnia, Montenegro, Hungary and Italy and that this expansion opportunity will exist only for one or two more years.

HEP’s consolidated net profit surged to a preliminary 260.3 million euro in the first nine months of 2014.

The utility’s total revenues fell 9.9% to a preliminary 10 billion kuna through September. The company is planned to post a net profit of 740.8 million kuna in 2014, the preliminary data showed.

HEP group owns and operates over 4,000 MW of installed generation capacity and 974 MW of heat production capacity, including 25 hydroelectric plants and eight thermal power plants fired by oil, natural gas or coal.

Download as PDF :

Download PDF