Private investment fund Fondul Proprietatea (FP) said that it has revised the valuation of its 20 % stake in Romanian electricity producer Hidroelectrica, reducing it to 2.2 billion euros at the end of October, which is 5.3 % lower compared to the valuation in July.
The fund said that the reevaluation was calculated based on multiple and relevant regulatory changes, namely the Government’s revised “cap and subsidy” scheme adopted in November.
Last month, FP announced that it has abandoned the idea of dual listing of Hidroelectrica’s shares, which are now going to be listed only on the Bucharest Stock Exchange (BVB). FP pushed for dual listing on the London Stock Exchange as well, but the Government, as the majority stakeholder, opposed to that move.
The Romanian Government approved the sale of 15 % of FP’s stake in Hidroelectrica, out of its 20 % stake, through the initial public offering which should take place on the Bucharest Stock Exchange by the end of June 2023. However, the state, which holds the remaining 80 % stake, is not willing to sell any of its shares.
