Electrica must improve its economic performance and become a stronger player at national and regional levels, including via asset purchases such as Enel’s, says Victor Cionga, the new Chairman of the Board of Electrica.
“We’re talking about a profitable company that managed a listing of reference, who wants to improve its economic performance and become a stronger player nationally and, why not, regionally. The changes, to increase efficiency and implementation of good corporate governance will probably involve some organizational changes”, he said in an interview for Bursa daily.
“Unfortunately, so far we do not know any Romanian company to be a regional player. It is a state of things, I will not analize the cause. From this point of view, Romania is behind Hungary, Czech Republic and Poland, last having in KGHM a world-class player. Electrica is the largest company in the distribution and supply of electricity in Romania and is now focused on its current operations in Romania. Depending on the opportunities, it is possible to analyze a regional expansion; In this case, it would be good to be as prepared as possible in terms of management for such a step”, said Cionga.
Changes in personnel might follow
“We will not change for the sake of change or because it is expected by a certain part of the market. If need be, we will strengthen certain level managerial positions by promoting new people. The main resource of a company is the human one, company employees, the people of Electrica. If we won’t find the right person within the company, we’ll recruit, of course, from the outside, but we weigh well because we want to complement the existing structure, not to (over) load it.”
Cionga says that a period of refurbishment within the group will follow, especially for corporate governance structures.
“Creating a system in this regards, that meets international standards and practices, is a priority for both the Executive and the Board of Directors. Good corporate governance means less risk and translates ultimately into more confidence in the company. As more and more companies will adopt the values of good corporate governance, business in general and capital markets in particular will enjoy a better reputation”, he said.
Electrica could buy Enel assets
Electrica expressed interest in the acquisition of assets of Enel in Romania and has submitted a non-binding offer, within “the deadline set by the seller and according to the rules provided by it.”
“We are assisted in this process by a consortium of consultants led by JP Morgan and that includes KPMG and CMS Cameron McKenna.”
The process for the sale of Enel in Romania is organized in two phases: one for submission of non-binding offers and one in which the finalists submit binding offers.
“Depending on the seller’s reaction to our non-binding offer, it is possible that at a future general meeting to demand a first approval of principles to be able to submit binding offers and negotiate the contract. The second approval will be required in a general meeting to be convened if our engaging offer will be accepted; in terms of time, it will depend on when we sign the contract”, Cionga concluded.