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October 27, 2021

Greg Konieczny: Premier voiced readiness to support Hidroelectrica listing process

Premier Sorin Grindeanu expressed willingness to support the listing process of Hidroelectrica, during a meeting of government and Fondul Proprietatea officials.

We had a working meeting with the Premier and Hidroelectrica’s initial public offering was also discussed on the occasion, and Mr. Prime Minister expressed his readiness to support this process from the authority of his position. We also discussed certain detail technical aspects, work plans or aspects both parties should see to in order to speed up the process and maximise the value of the offer, said Grzegorz Konieczny, Fondul Proprietatea portfolio manager.

He specified that Hidroelectrica needs no additional cash for investments.

In 2013 the government decided to list Hidroelectrica on the Bucharest Stock Exchange through capital increase and launch an IPO for new shares accounting for 15 percent of the equity previous to the increase.

The Romanian state holds 80 percent of Hidroelectrica, through the Energy Ministry, and 20 percent of the stake belongs to Fondul Proprietatea.


“Sovereign Wealth Fund, an interesting and ambitious plan, it can create a lot of value for Romania”


With regard to the Sovereign Wealth Fund, said Konieczny, we think that it is an interesting and ambitious plan and, if properly executed, it can really create a lot of value for Romania, the Romanian economy, but also for the state-controlled companies and Fondul Proprietatea as a shareholder in these.” I think there are two key issues related to the Fund. Firstly, this should bring a clear separation between the ownership function and policy making function of the Government. This change would really free up a lot of time from the ministers that right now are, willingly or unwillingly, spending a lot of their time with the SOEs. Secondly, this should also bring more transparency to what happens with the states assets. We would expect this Fund to have the same reporting requirements as Fondul Proprietatea and other closed-end funds in Romania, so they would follow the same capital markets regulations set by ASF. This could bring a lot of public accountability and scrutiny, which is not the case now. On top of this, a proper corporate governance structure of the Fund would be even more beneficial to us all, as an independent board and professional management of the Fund should definitely help in monitoring the companies. We offered to the Government to share our expertise and experience from managing Fondul Proprietatea and other funds in other countries, and to help to make it a success,” Konieczny maintained.


Share capital of Fondul Proprietatea down by over 503 million lei


The Extraordinary General Meeting of Shareholders (AGEA) of the Fondul Proprietatea (FP) decided on Tuesday to reduce the share capital by approximately 503.7 million lei to 5.239 billion lei, according to a release published on the website of the Bucharest Stock Exchange (BVB).

Therefore, the subscribed share capital cut of the Fondul Proprietatea was approved from approximately 5.724 billion lei to 5.239 billion lei by reducing the share’s nominal value from 0.57 lei to 0.52 lei.

“The cut is justified by the share capital’s optimization of the Fondul Proprietatea, including the reimbursement of contributions’ share to the shareholders, proportionally with the sharing to the paid share capital of the Fondul Proprietatea. After the cut, the subscribed share capital of the Fondul Proprietatea will stand at 5,238,521,987.92 lei, divided in 10,074,080,746 ordinary shares with a nominal value of 0.52 lei,” the quoted source mentions.

Moreover, the durable power of attorney was decided, with the possibility of substitution, of Grzegorz Maciej Konieczny to sign shareholders’ decisions, as well as the amended and current form of the Constitutive Act, as well as any other documents related to it, for fulfilling of all the procedures and formalities stipulated by the law in order to implement the shareholders’ decisions, including their publishing and registering formalities with the Trade Registry or any other public institution.


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