Fondul Proprietatea salutes the Romanian Constitutuional Court’s (CCR) decision given on Tuesday against the changes to the corprate governance, as the changes in the management of state-owned companies have delayed the development process. At the same time, FP looks to sell Enel and E.ON remaining stakes, answered energynomics Johan Meyer, CEO Franklin Templeton Investments Bucharest Branch and Portfolio Manager of Fondul Proprietatea.
Lack of corporate governance affected companies in the portfolio.
”For many of these companies everything went backwards”, says Meyer, while explaining that the frequent re-appointment of new executives and board members to the state owned companies led to a delay in investment. However, he told energynomics that most of the companies in its portfolio did not suffer losses in value, after the state dictated the payment of 90% worth of dividends to the shareholders, followed by an extra- dividend from reserves, last year.
At the same time, FP looks for what is best for Hidroelectrica, but decries the often changes of management and of governments.
”We did not meet yet the new minister…We have ongoing discussions with the authorities, it is unsetting and annoying to have such often ministerial changes”, he said.
While Meyer told energynomics that FP has started a strategic review for Hidroelecttrica, FP officials told the press that they cannot see it privatized this year. And while FP looks to sell ENEl and E.ON shares it still holds, ”changes in ministries also influence the process of sell” it initiated, and therefore there ”is no specific timeline” for it.
