Fondul Proprietatea asks for the revocation of the law that prevents the Hidroelectrica listing

Listing Hidroelectrica involves several key steps to follow, but first, the repeal of Law 173/2020, which prohibits the alienation of state holdings, said Johan Meyer, CEO Franklin Templeton Investments Romania and Portfolio Manager Fondul Proprietatea during a press conference.

“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 in 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. In terms of potential investors in Hidroelectrica, I think you can count on many of the shareholders of Fondul Proprietatea, Romanian pension funds, but also international shareholders,” said Johan Meyer.

Asked what the company’s plans are in terms of equity securities, he said that the portfolio is continuously evaluated, both for listed and unlisted companies.

“For obvious reasons, it is easier to trade listed assets based on an investment decision that is reached after a thorough analysis of financial performance. For unlisted companies, we continue to analyze and work with companies to improve efficiency, profitability, corporate governance, and quality of management, and we have recently seen an improvement in this direction with many changes in directors and board members, in various ministries and in portfolio companies. “Corporate governance legislation is not only in the letter of the law, but also in its spirit, in the sense of appointing experienced professionals who are truly independent. I am confident that this process will continue in the coming months,” Meyer said.