Vice-President of the private investment fund Fondul Proprietatea (FP) Marius Dan said in an interview that if the Romanian Government continues to insist on listing the shares of electricity producer Hidroelectrica only on the Bucharest Stock Exchange, the fund will have to reduce the stake put up for sale to about a half of its current stake in the company, namely to 10 %.
Under the National Recovery and Resilience Plan (PNRR), Romania’s Government committed to having floated at least 15 % of Hidroelectrica’s shares by mid-2023. Since the Government previously said that it does not plant to list any of its shares in the company, the entire 15 % will come from FP’s stake.
Dan said that, in order to demonstrate its good faith and demonstrate that the single-listing option is viable, the Government should top up FP’s 10% stake with at least 5 % of its shares under the initial public offering (IPO) expected to take place sometime in the first half of next year. He added that the fund will approach the Prime Minister and relevant Ministries in the coming weeks to discuss the recommendation for a dual listing drafted by the consortium of banks brokering the operation.
Dan said that FP is ready to list the shares as soon as possible, adding that the optimal window of opportunity is between March and April next year.
Last week, FP said that, after launching a tender for the selection of the initial public offering (IPO) consultant for the sale of its stake in Hidroelectrica, it has concluded that the fees are too high and is now considering selling the stake by direct negotiations. However, the Romanian Government, which holds 80 % stake in Hidroelectrica, does not favor this option and would prefer the initial public offering.