Romania: Hidroelectrica extends cooperation with Morgan Stanley-Raiffeisen Capital

, SEE Energy News

Romanian electricity producer will extend the agreement with financial partners Morgan Stanley-Raiffeisen Capital until 2017.

Hidroelectrica extended until 2017 engagement letter signed with Morgan Stanley and Raiffeisen Capital & Investment for brokerage listing on the stock exchange for a package of 15% of the company.

The two financial institutions were selected in January 2014 and the letter of commitment was signed the following month.

The Romanian state owns 80% of Hidroelectrica, and 20% of shares are held by the Fund. Listing decision was taken in 2013. The government would form a capital and the shares proposed for listing would be equivalent to 15% of the existing share capital before increasing.

In the period June 2012 – June 2013, the power producer was insolvent, but the court decided to reopen the judicial reorganization in February 2014, for which the privatization process was suspended.

Hidroelectrica’s listing on the Bucharest Stock Exchange will take place most likely in November 2016.

“We hope that in May or June we will come out of insolvency and clarify all the elements in order to be present with a part of Hidroelectrica shares on the capital market. This is the context in which the decision was taken to continue collaborating with Morgan Stanley and Raiffeisen Capital & Investment on brokering the listing on the stock exchange, but also with other consultants on various segments of activity.”, Remus Borza administrator of Hidroelectrica said, transmits