Romania: State to sell minority stakes in key energy companies24. October 2016. / SEE Energy News
The Romanian Government announced that the state will sell minority stakes in several key companies in energy and transportation sector in order to finance investment programs in those enterprises.
The statement from the Government said that it was agreed that the diversification of ownership in these enterprises by capitalizing minority stakes may be beneficial for their efficiency and profitability. The list of these enterprises includes Energy Complex Oltenia, electricity producer Hidroelectrica and oil company Rompetrol.
For EC Oltenia and Hidroelectrica, Ministry of Energy suggests running an initial public offering (IPO) to increase their capital by 15.29 % and 15 % respectively. EC Oltenia was established in 2012 after a merger of several state-owned energy companies. It includes mining company SNLO and Turceni, Craiova and Rovinari thermal power plants. The state holds 77.15 % stake in EC Oltenia, while Fondul Proprietatea has 21.56 % of the shares. Regarding Hidroelectrica, the state expects to raise about 750 million euros with a 15 % stake IPO. Currently, the state holds 80.06 % of the company’s share, while Fondul Proprietatea owns the rest.
For Rompetrol, the state is considering the sale of 26.69 % of the company’s share it owns through the public auction. Rompetrol is majority owned by Kazakh KMG International which has 48 % stake, while the state has 44.6 %.
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