Franklin Templeton Says Romania Could Attract EUR3.5B By Listing Nuke, Hydropower Plants

Hydropower generator Hidroelectrica should draw EUR2.2 billion when listing, while nuclear power plant operator Nuclearelectrica could obtain EUR1.3 billion, without the state having to lose majority, Konieczny told the conference MEDIAFAX Talks about the Restructuring of Loss-Making Companies.

The Proprietatea fund is managed by US firm Franklin Templeton, which tries to convince the government to the list the two companies' in Bucharest, while keeping the majority stakes.

Hidroelectrica is the cheapest power producer in Romania and a subject of debate regarding several bilateral contracts concluded in the past, at prices benefiting the buyer.

The Franklin Templeton official said the bilateral contracts caused Hidroelectrica to lose 800 million lei (EUR1=RON4.1084) from its 2009 profit.

Referring to the privatization of OMV Petrom (SNP.RO), Romania's largest oil company and another topic of intense local debate, Konieczny said the company may, indeed, have been privatized at a very low price, but this has allowed it to become profitable.

The Franklin Templeton official added companies need corporate governance, bourse listing and investment, without the Government losing majority.

Previously, the economy minister announced late-2010 that 15% stakes in gas producer Romgaz, power grid operator Transelectrica (TEL.RO) and gas transporter Transgaz (TGN.RO) would be listed by the end of this year.

If you liked this story, please follow MEDIAFAX.RO on FACEBOOK »

The content of mediafax.ro is for your information only. Republishing or using this content is forbidden without express consent of MEDIAFAX. For this consent, please ask for it by mail at vanzari@mediafax.ro.