On April 28, the Ministry of Energy - as the majority shareholder, and Fondul Proprietatea, a 20% shareholder of the largest electricity producer in Romania, Hidroelectrica, agreed to distribute RON 3.8 bln (EUR 760 mln) of the company's profits achieved in 2021 and before, as dividends.

The Ministry of Energy agreed with Hidroelectrica's proposal to distribute RON 2.8 bln from the 2021 profit but also approved FP's request for a RON 1 bln special dividend paid out of Hidroelectrica's retained earnings, Ziarul Financiar reported.

For a company valuation of EUR 10 bln, the latest value compiled by Fondul Proprietatea, this results in a 7.6% yield. In addition to this, and based on the evaluations provided by Fondul Proprietatea, Hidroelectrica also generated an average annualised capital gain of over 20% (calculated in euros) over the past five years.

From the dividends just approved by the shareholders, the Romanian state will receive RON 3.04 bln and FP RON 760 mln (EUR 152 mln). 

andrei@romania-insider.com

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