Romanian property restitution fund Fondul Proprietatea (FP) is in talks with “numerous interested parties” on a potential sale of its stake in the country’s main hydropower producer Hidroelectrica, Johan Meyer, FP portfolio manager and CEO of Franklin Templeton Investments Ltd, told a press conference in Bucharest on September 4. 

FP, which is a minority stakeholder with 20% in majority state-owned Hidroelectrica, indicated last year that it was considering selling its stake in the hydropower producer as plans for an IPO have repeatedly stalled. 

Speaking at the press conference, Meyer declined to name any of the potential buyers, saying the process was ongoing. 

He described Hidroelectrica — which makes up 36% of the value of FP’s portfolio — as the "crown jewel for Fondul and for Romania”, stressing that “As renewable energy is highly topical, a company like this with 100% hydro generation is an incredibly valuable asset. We want to make sure this is reflected in any discussions.”  

However, he also expressed cautious optimism that there may be a chance for the IPO to go ahead now that the mandate of the consortium initially appointed for handle the listing has come to an end. 

“We have noticed that the consortium’s mandate for the IPO of Hidroelectrica was not extended during the latest shareholders meeting on 6 August 2018. This situation generates an opportunity for the government to select a new investment consortium that can reignite the IPO process and take it forward,” Meyer told journalists. 

“The government has now a chance for a fresh new start for the most awaited listing on the local capital market.”

Hidroelectrica reported RON962mn (slightly over €200mn) profit in January-June this year, 34% up y/y, driven by the 20% y/y advance of electricity generation to 9.17TWh.

The record performances of the company in H1 were mostly due to the favourable natural circumstances, the company’s manager Bogdan Badea commented when the results were announced.