Romania’s Fond Proprietatea, a minority shareholder in Hidroelectrica, announced this week that its shareholders have decided that the planned public offering of a 19.94% stake in the majority state-owned hydropower producer will take place only on the Bucharest Stock Exchange, BVB, thus rejecting earlier plans for double listing.
The proceeds from the sale of part or the entire package of shares during the secondary public offering will be distributed to the shareholders of Proprietatea Fond as a special dividend within three months after they are collected, FP said in a statement submitted to the Bucharest Stock Exchange.
This item was added to the agenda of the extraordinary assembly of shareholders of Proprietatea Fond at the request of the Ministry of Finance, which owns a 5.97% stake in FP.
The Romanian government announced in August that FP will launch an IPO to sell up to 19.94% of Hidroelectrica by the end of the first half of 2023.
In April, FP said that a dual listing is critical to the success of the IPO and that listing only on the Bucharest Stock Exchange carries the risk of reducing the volume of the transaction, with a negative impact on the company’s value and further share price movements after the listing. Furthermore, a successful dual listing would help the Romanian government meet the requirement of the National Resilience and Recovery Plan to list at least 15% of Hidroelectrica shares by June 30, 2023.
The Romanian state owns 80.06% of Hidroelectrica shares, while Fond Proprietatea owns 19.94% of the shares. The company manages 209 hydropower plants with a total installed capacity of 6,482 MW, as well as a 108 MW wind farm in the Konstanz district.
Source: seenews.com
