Hidroelectrica’s listing involves several key steps that must be followed, but first, the repeal of Law 173/2020, which prohibits the alienation of state holdings must be performed, said on Wednesday Johan Meyer, CEO Franklin Templeton Investments Romania and Portfolio Manager Fondul Proprietatea.
“There are several key steps to follow. First, the repeal of Law 173 prohibiting the alienation of state holdings. Hidroelectrica has two shareholders represented by the Ministry of Energy as the majority shareholder and Fondul Proprietatea as a minority shareholder. The listing process will be led by Hidroelectrica. There is support from all parties involved for the listing. The first steps that have been taken have been the appointment of a legal adviser and a capital market consultant, who will help in the future structuring of the initial public offering. The next step would be the appointment of investment banks, the structuring of the IPO and its development.
In terms of potential investors in Hidroelectrica, I think you can count on many of Fondul Proprietatea’s shareholders, Romanian pension funds, but also international shareholders,” said Johan Meyer, quoted by Agerpers.
He also said that there is still a significant discount that is applied in the valuations of unlisted entities, such as Hidroelectrica, which means that the value for Fondul Proprietatea continues to be considerably higher than what we see in the current figures.