Hidroelectrica is struggling to get rid of insolvency procedures, and in the meantime it will follow a restructuring program, says Gabriel Dumitraşcu, Director of Privatizations in the Department of Energy.
“No one can advance a forecast about Hidroelectrica`s privatization,” says Dumitraşcu. Meanwhile, Electrica “is on track” and will be privatized in June.
Electrica will be divided in a process that could lead to the creation of a long-term energy asset fund that could start as a single company acquiring the assets of Electrica, and could slowly rise to a billion euro fund, Dumitraşcu said at a conference organized by Ziarul Financiar.
Electrica`s division will be decided Thursday, March 20, 2014, by the General Shareholders Meeting (GSM).
“Tomorrow a GSM will take place to approve the separation of a firm to manage stakes in subsidiaries. We keep the listing deadline, i.e. the first days of June. Studies and the premarketing shows that Electrica is attractive and there is an interest from the market and investors,” said Dumitraşcu.
He says that the government is negotiating with Enel for the Electrica Muntenia Sud stake of 13.5%, for which the state will most likely get more than 500 million euro, or even the 520 million euro initially claimed by the state.
“We are in talks with Enel for this amount, we benefit from the advice of an international group,” says Dumitraşcu, explaining that the state held similar talks with E.ON.
“The issue of an energy fund was raised for a long time, we were trying to convince the finance ministry about this need for the past year,” says Dumitraşcu.
He also believes that “the state should have a single institution with responsibilities in privatization.” In this regard the government has received “a proposal that`s in a polishing phase.”
At the same time, in the CE Oltenia`s (CEO) case, the privatization will be pushed after September, 15, although the plant`s sale was “on schedule”, as “It was hard finding an international consultant to conduct an evaluation of coal reserves, and the term of three months asked by the state for this assessment was denied.”
CEO`s privatization could have been in July 15- 20, but the summer months are not preferred for privatizations, and therefore ” we’ll probably push it sometimes after September 15.”
However, the precise deadline will be determined after government talks in April with the international financial institutions, said Dumitraşcu.
“We will announce the exact term at the end of April,” said the head of energy privatizations.