Fondul Proprietatea (FP) currently negotiates the sellout of share packages it owns in Engie, Enel and Electrica subsidiaries, and deals are closing up as the European market has increased the value of similar assets, told energynomics.ro the FP’s country representative, Greg Konieczny. The overall shares of all companies mentioned are valuated at about 650 million euro (2,9 billion lei).
FP already sold this year Romgaz, Petrom, via Global depository receipts (GDRs) listed in London two weeks ago, and E.ON shares, for an undisclosed amount.
The E.ON package was valued prior to sellout at about 100 million euro (445.9 million lei), and was representing 18% in E.ON Distributie Romania and 13% in E.ON Energie Romania.
“We want to make the portfolio more liquid. We are discussing with different parties to sell it. It is hard to put a deadline to these deals, but the demand for these assets in Europe has increased, which is a good thing,” said Konieczny, responding to energynomics.ro questions.
Listings are all delayed until after elections
About Hidroelectrica’s listing, Konieczny says that delays in naming the management and Supervisory Board are also postponing the privatization.
”The current scenario provides the listing in the second quarter of next year…That doesn’t depend just on us, it depends on the new government, as the process doesn’t move at the right pace so far, a lot of decisions being delayed, including naming the board and management. We hope that after the elections, we’ll have commitment from the new government and take all the necessary decisions to make it a real success”.
He added that listings of companies ”bring for any government more transparency, efficiency and accountability of all the parties involved, including for the board, managers and ministers that supervize them.”
“When talking about corruption, is the best way not to fight the corruption but to prevent it,”also said the FP manager.
At the same time, the Romanian pension funds are lacking instruments in the local market, so they are forced to invest abroad, and privatization is key in changing that.
“Romanian capital is here, is just not used. It is very sad, and we hope that the new government will address this isssue.”
On the list of companies that can be listed soon are Portul Constanta (Administratia Porturilor Maritime), Bucharest Airport (CN Aeroporturi Bucuresti) and the salt maker Salrom. The government delayed the decision about Salrom, where FP has 49%, and the shareholders delayed three times the general meetings that should approve of the listing. For the other companies, there’s no timetable agreed yet, Konieczny concluded.
