Powered by Max Banner Ads
Hidroelectrica’s capital will be increased by 12.49 per cent by issuing new shares. Fondul Proprietatea has the right of underwriting 2.49 per cent of the shares, based on its pre-emption right, and 10 per cent of the shares can be bought through Bucharest Stock Exchange, Mediafax notes. ‘The proposal regarding the privatisation strategy (…), the increase of the registered share capital by infusion of private equity, was based on the following elements: attraction of independent financial resources from underwriters (institutional and retail investors), needed for development, modernisation and revamping the company, with an impact on the state’s income as shareholder and expectations of the significant minority shareholder, Fondul Proprietatea, regarding the listing of the company,’ reads the explanatory note for the draft Government decision prepared by the Ministry of Economy.The letter of intent the Government has sent to the International Monetary Fund says Hidroelectrica will organise the primary public offering for 15 per cent of the shares, the note explains. Fondul Proprietatea will enjoy pre-emption rights, meaning that, apart from the initial 10 per cent, an additional package of shares of 2.49 per cent will be issued and offered for underwriting to Fondul Proprietatea in order to preserve its current percentage of 19.94 per cent in the company. ‘We can therefore offer for subscription to potential capital market investors a package of newly issued shares representing 10 per cent of the registered share capital of Hidroelectrica,’ the explanatory note reads. Fondul Proprietatea will be able to purchase the new shares at a price similar to the one charged in the public offering. The draft normative acts specifies no term for the public offering.