April 28, 2014 / 9:26 AM / in 4 years

Romania could get up to 500 mln euros from future Hidroelectrica IPO

BUCHAREST, April 28 (Reuters) - Romania could get up to 500 million euros ($691.9 million) from the bourse listing of a 15 percent stake in state-owned hydro power producer Hidroelectrica, its manager Remus Borza said on Monday.

The initial public offering was planned for this year under the terms of the European Union state’s 4 billion euros aid deal led by the International Monetary Fund.

But the listing is now postponed after an unfavourable court ruling pushed the country’s biggest and cheapest power producer back into insolvency. The firm was forced into insolvency in 2012 by a severe drought and a string of loss-making contracts, a procedure it exited last year.

“The listing on the Bucharest bourse and potentially on the London bourse will generate a capital infusion of 300-500 million euros, which will be used to upgrade high power plants and finalise investment in new generation capacities,” Borza said in a statement.

His estimate is slightly more generous than that of Hidroelectrica’s minority shareholder Fondul Proprietatea . Fondul values its 20 percent stake in the firm at 500 million euros. ($1 = 0.7227 Euros) (Reporting by Luiza Ilie)

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