Romania moves forward with IPO of power distribution group Electrica

By bne IntelliNews April 23, 2014

Romania’s government has separated the core activity of power distribution company Electrica from its non-viable services units, placed the latter under insolvency and settled the arrears issues in the preparations to soon operate a 51% IPO at the firm, the head of the privatisation body, Gabriel Dumitrascu, told the Bursa daily.

The IPO will take place in the first half of June after an official announcement at end-May, Dumitrascu said. Romania will thus observe the privatisation calendar drafted under the agreement with the IMF.

Electrica is fully-owned by the government and has RON 2bn [EUR 450mn] of equity at book value. The company’s capital will be increased by 105% and the new shares issued will be sold to investors. The government expects some USD 400-500mn for the 51% stake – and plans to leave the money in Electrica’s accounts for further investments.

The legal registration of the company that will be subject of the IPO is expected within 2-3 weeks, Dumitrascu said. There will be a dual listing of Electrica’s shares, however, he added, explaining that the parallel trade of the shares on the local and on a foreign market minimises the possibility of speculations.

The government is close to incorporating separately the company that manages the minority shares in already privatised regional power distribution companies and will keep under the Electrica ownership only the three regional distribution firms that have not been privatised yet.

Related Articles

Montenegro to speed up re-nationalisation of power firm EPCG

Montenegro’s government has decided to speed up the acquisition of Italian A2A's stake in the power firm EPCG, paying €68.9mn for a ... more

Croatia reportedly receives just one bid to lease capacity at planned LNG terminal

LNG Hrvatska has reportedly received just one binding offer to lease capacity at the planned planned liquefied natural gas (LNG) terminal on the Croatian island of Krk, unnamed sources ... more

Finland gives final nod to construction of Nord Stream II

Finland has issued a second and final permit for the construction of the controversial Nord Stream II pipeline that is to pump gas from Russia directly to Germany via a Baltic Sea route, the Regional ... more