The state-owned company Hidroectrica will come out of insolvency during this year and will be listed on the stock exchange in the first half of 2016, Remus Borza, the representative of Euro Insol, company’s judicial administrator said on Thursday, attending Romania Investor Day event, which takes place in London.
“It will be by far the largest listing. The state will get at least EUR 500 million for the 15 percent stake of Hidroelectrica,” Borza said. As an argument in this context, the representative of Euro Insol pointed out that the Romanian company ended 2014 with an EBITDA of 65 percent of turnover. In other words, he emphasized that Hidroelectrica was last year the most profitable company in Romania, being the largest energy producer in the domestic market, with a market share of 30 percent.
The company has an office in Budapest and in March and will open a branch in Serbia. In the last two and a half years, Hidroelectrica cut by 30 percent the establishment plan.
The initial public offering (IPO) was planned for 2014 under the terms of the European Union state’s EUR 4 billion aid deal led by the International Monetary Fund. But the listing is now postponed after an unfavourable court ruling pushed the country’s biggest and cheapest power producer back into insolvency. The company is insolvent for the second time since February 2014, the first time being in June 2012 – June 2013.