Romania could lose billions of Resilience Facility money if "at least 15% of state-owned utility Hidroelectrica is not listed this month," Reuters reported, quoting the European Commission.

Such claims are, however, in contradiction to the official text of the Romanian PNRR, not to mention the common confusion about "listing" versus "trading" a company's shares.

Firstly, a company – rather than part of its shares (generally referred to as the free float) – gets listed. Secondly, the national implementation of the Resilience Facility (PNRR) stipulates in Part 2 Component 6 - Energy that "up to 15%" (meaning less than 15% ) "will be traded" on the exchange after the IPO. The logic of the milestone [#122] is having Hidroelectrica's shares listed, such as to give Fondul Proprietatea the option to sell whatever stake it desires -- and not a particular stake set by third parties.

“[...] un pachet de acțiuni de până la 15% din Hidroelectrica va fi tranzacționat pe bursă după o ofertă publică inițială,” in Romanian in original. 

And yet, Reuters quoting "the European Commission" speaks of "listing" at least 15%. 

Asked what would happen if a smaller stake gets listed, the European Commission told Reuters: "This milestone requires that the listing of at least 15% of the shares of Hidroelectrica be completed."

"We wouldn't speculate at this stage on milestones and targets not being met. As a matter of general principle, member states should implement their recovery and resilience plan as endorsed ... in order to receive the funds."

Hidroelectrica is expected to go public / list its shares on Bucharest Stock Exchange this month under an IPO. Minority shareholder Fondul Proprietatea initiated the process and will sell part of its 20% stake.

iulian@romania-insider.com

(Photo source: Facebook/Hidroelectrica)