News Column

Five bidders compete to intermediate 15% IPO at Romania's Hidroelectrica

January 21, 2014

Romania's government has received five bids from consortia of banks and brokerage houses interested in intermediating the planned 15% IPO at the country's largest power producer - Hidroelectrica, daily Ziarul Financiar announced. The deadline for submitting offers expired on January 20 . Hidroelectrica produces some 30% of the country's power and the IPO is scheduled for June. The winning bidder should be announced on Friday, Jan 24 . The fee for the intermediation is valued at several millions of euro. State-controlled Hidroelectrica is expected to cash some EUR 200mn-400mn from the issue, according to unofficial estimates. The 15% IPO at Hidroelectrica is perhaps the most attractive sale of assets anticipated for this year, when power distribution firm Electrica and coal-fired power plants CE Oltenia are also to be subject to IPOs. The key assets of Hidroelectrica are the existing large-sized hydropower plants and the dams including 50% of the Portile de Fier [Iron Gates] plant on the Danube operated in partnership with Serbia . Hidroelectrica's installed capacity exceeds 6GW. As opposed to the small-sized power plants, the large-sized plants operated by Hidroelectrica are not entitled to allowances under the green energy support system. But on the other hand, they achieve lower operating costs and furthermore are unlikely to face direct competition since the construction of large-sized hydropower plants is broadly seen as damaging the environment. The five consortia that have submitted offers are: Alpha Finance Romania, Alpha Bank Romania, Deutsche Bank [ London ], Intercapital Invest, Broker, UniCredit Bank [ Austria ]. Erste Group Bank [ Austria ], Goldman Sachs International , Banca Comerciala Romana . BRD Groupe Societe Generale, Societe Generale and JP Morgan. Citigroup Global Markets Limited, Wood&Company Financial Services [Czech Rep.], NBG Securities Romania, NBG Securities [ Greece ], Swiss Capital [ Romania ] and BT Securities [ Romania ]. Raiffeisen Capital & Investments and Morgan Stanley & Co. International.

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Source: IntelliNews - Weekly Reports

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