Romania's Hidroelectrica picks up Morgan Stanley and Raiffeisen to manage 15% IPO

By bne IntelliNews January 28, 2014

Romania has picked up a consortium of Morgan Stanley and Raiffeisen Capital&Investments to manage the 15% IPO of the country's major hydropower producer Hidroelectrica, Ziarul Financiar daily announced quoting Hidroelectrica sources.

The IPO, scheduled for June, is going to be carried out in Bucharest and London and is expected to attract strong interest from investors.

The selected bidder will charge a 0.679% fee – roughly four times lower than asked in the first round of the bidding process. In the first round last Friday, Deutsche Bank asked for the lowest fee – 0.96%, but the government called a second round of improved bids on grounds that the spread between the highest and the lowest bid was too wide.

The Romanian state, currently holding 80% in Hidroelectrica, wants the company to operate a capital increase under which the state’s stake would decline by 15%. The revenues, cashed by Hidroelectrica and used for investments, are expected at between EUR 200mn and 400mn. Hidroelectrica generated some 16.5TWh of electricity per year in the past decade and has an installed generation capacity of over 6GW.

The other four consortia that filed bids for Hidroelectrica's 15% IPO were JP Morgan, BRD and Societe Generale; Goldman Sachs, BCR and Erste; Deutsche Bank, UniCredit, and brokerages Alpha Finance, SSIF Broker and Intercapital Invest; and Citigroup together with brokerages Wood&Company, Swiss Capital, NBG Securities (Romania and Greece) and BT Securities.

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

Dismiss