There has been very little progress over the last few months in relation to Hidroelectrica IPO process and a lot of decisions have been stalled within different committees and different levels of the Government, Greg Konieczny, Portfolio Manager of Fondul Proprietatea (FP) and Executive Vicepresident within Templeton Emerging Markets Group stated on Tuesday in a press conference.
“Unless there is a really clear decision from the very top level of the government to strongly commit to the Hidroelectrica IPO, it’s becoming increasingly unlikely that we’ll have this IPO before the end of the year. But this morning (ed. note: Tuesday, February 28) we had a meeting with the Prime Minister who assured us there is a willingness from the Government to really move this process forward as quickly as possible,” Konieczny warned.
According to him, the fact that there’s still an interim board and an interim management at Hidroelectrica, “that’s really a risky situation for the company of this size and of this strategic importance for the Romanian electricity market.”
Ciolos government concluded the selection process of the new board of Hidroelectrica, about the corporate governance in SOE, FP officials hoping to have a decision from the current government to finally appoint a new board for the next four years within a month or so.
There is also the issue of the non-core investments in the company’s assets that should be transferred out of the company before the IPO is launched, Greg Konieczny points out.
In 2013, the Government decided the listing of state-owned hydro power company on the Bucharest Stock Exchange (BVB) by raising capital and launching an initial public offering (IPO).