Romanian state-controlled hydropower group Hidroelectrica convened shareholders on May 26 to approve the distribution of 90% of last year's RON 1.39 billion (EUR 290 mln) profit as dividends.

The company's management proposed the dividend payout ratio abut the shareholders - the Romanian state (80%) and investment fund Fondul Proprietatea (20%) - have the final decision.

Fondul Proprietatea would receive RON 250 mln (EUR 42 mln) in dividends. Meanwhile, the Romanian state, as the owner of an 80% stake in Hidroelectrica, would get just over RON 1 bln (EUR 206 mln), Ziarul Financiar reported.

In related news, the Romanian minister of economy and energy Virgil Popescu said the planned initial public offering (IPO) of Hidroelectrica "depends on the market circumstances," ZF reported. 

The Romanian Government suspended the sale of majority stakes in energy companies during the state of emergency, at a time when Czech utilities group CEZ was seeking a buyer for its Romanian assets. Hidroelectrica is among the bidders interested in CEZ's assets. This could also impact the Government's decision on the dividend payout ratio (in the sense of leaving more resources in the company's accounts for the potential takeover).

(Photo: Hidroelectrica Facebook Page)

editor@romania-insider.com