Romania’s Energy Ministry is preparing a Government decision to change the procedure of listing the most valuable state company, Hidroelectrica, on the stock market.

The Government wants all the money from the power producer’s initial public offering (IPO) to go to the state budget instead of the company’s accounts, said yesterday Andreea Lambru, president of Hidroelectrica’s Supervisory Board, reports local Agerpres. This means that the listing process will not take place this year.

Lambru explained that it’s better to choose a listing method whereby the money goes to the state budget, namely the direct listing of a package of 15% of the shares owned by the state. According to the current listing method, which was approved by the Government in 2013 and implies a capital boost, the funds would remain in the company’s accounts and finance its investments.

Lambru added that Hidroelectrica currently has enough money for investments. “We won’t even be able to spend the money that we already have, so it’s welcome (that the funds go) to the state budget,” she said.

Under the new conditions, the listing procedure will be resumed and a new Government decision needs to be approved.

Meanwhile, Hidroelectrica’s minority shareholder Fondul Proprietatea, which holds 20% of the company’s shares, has asked that the company distributes 100% of last year’s net profit of some RON 1 billion (EUR 220 million) as dividends. The fund also wants the company to pay the shareholders RON 1 billion from its cash reserves. The proposal may also be supported by the Energy Ministry, which holds the majority 80% stake, as the Government is looking for ways to increase budget revenues.

editor@romania-insider.com