Home Stock list Fondul aims to list a minority stake in Hidroelectrica in Romania by April 2023

Fondul aims to list a minority stake in Hidroelectrica in Romania by April 2023


BUCHAREST, Oct 11 (Reuters) – Romanian state-owned hydroelectric producer Hidroelectrica’s planned IPO could be smaller than originally planned and will not take place until March or April next year, the shareholder said on Tuesday. Fondul Proprietatea (FP.BX). .

Fondul, the sole minority shareholder in the company, which has won government approval for the IPO, had previously set November 15 as the target date for the listing launch.

Fondul was created as a fund to compensate Romanians for assets seized under communism and holds minority stakes in a series of public companies, including 20% ​​of Hidroelectrica.

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The fund is managed by investment manager Franklin Templeton, who told Reuters on Tuesday that plans to float a 15% to 20% stake in Hidroelectrica as part of a $2.5 billion deal euros ($2.43 billion) may need to be cut if the Romanian government continues to resist. a dual listing in Bucharest and London.

“There are question marks around the possibility of selling 15% of Hidroelectrica in a local listing only,” Franklin Templeton deputy chief executive Marius Dan said.

“In order to achieve an IPO on the Bucharest Stock Exchange, the transaction may have to be reduced by 1.0 to 1.5 billion euros.”

The government wants a listing in Bucharest to promote liquidity in the domestic market. The IPO will involve the sale of Fondul’s shares in Hidroelectrica, not state shares.

Dan said the fund would seek to meet with the prime minister and leaders of the ruling coalition in the coming weeks to present the recommendation of its selected consortium of banks for a dual listing to attract investors.

“Even though this is just a listing in Bucharest, we are committed to continuing the process and finalizing it as soon as possible. That being said, we are not selling Hidroelectrica at any cost,” Dan said.

He said Fondul would start holding “preliminary” meetings for the IPO in the next two to three weeks.

“We will try to complete the Hidroelectrica slate as soon as possible, but from where we are today, the optimal window of opportunity appears to be March-April 2023,” he said.

Reducing the float would also mean the government failing to meet its commitment to go public with 15% of Hidroelectrica by mid-2023 as part of targets agreed with the European Union for post-pandemic recovery funds. Various state projects to list Hidroelectrica have existed for almost 15 years.

Fondul also aims to complete the IPO of salt producer Salrom by May 2023, Dan said.

($1 = 1.0300 euros)

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Reporting by Luiza Ilie; Editing by Susan Fenton

Our standards: The Thomson Reuters Trust Principles.

Luiza Ilie

Thomson Reuters

Generalist journalist based in Bucharest covering a wide range of Romanian topics ranging from elections and economy to climate change and festivals.