Property Fund urges IPOs at Romanias major hydro, nuclear power plants.

By bne IntelliNews August 19, 2011
The Property Fund has initiated legal procedures to summon general shareholders meetings at Romanias major power generators Nuclearelectrica and Hidroelectrica, in order to accelerate the planned IPOs at the two companies, according to a release posted on the Funds website. The meetings should be scheduled within 60 days. The Property Fund (FP), managed by Franklin Templeton Investments, holds 9.72% in Nuclearelectrica and 19.94% of Hidroelectrica. The ministry of economy holds the rest of the shares in both companies. FP advocates that the government agreed under the latest MoU with the IMF to sell minority stakes in the two state-controlled companies in order to generate funds necessary for further investments in the energy sector. By floating their shares, the two companies would improve their corporate governance, increase managements accountability and thus gain better access to the financing needed for the development of the major investment plans, FP explains. Both companies have scheduled major development projects for the coming years, including the 1,000MW reversed hydro pumped plant at Tarnita and the two 720MW nuclear reactors at Cernavoda nuclear plant.
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