Privatisation Program to Resume in Romania
- New Europe Investor
- April 04, 2016
The general manager of the Bucharest Stock Exchange (BVB) has said that there will be a resumption of privatisation in Romania this year.
Ludwik Sobolewski said in an interview with Reuters that salt producer, Salrom is likely to be the next candidate.
He also said that energy producer, Hidroelectrica will be a candidate for privatisation in 2017. He said, ‘there is a chance it could be listed this year, but more likely the process will take place next year. Also, it would be extremely important for the market.’
Hydroelectrica owns 272 power plants and pumping stations in Romania and employs over 5,000 people in the country.
Sobolewski said that privatisations of the airports in Bucharest and Constanta were looked at last year, but the process stagnated.
With regards to salt producer, Salrom, Romanian investment fund Fondul Proprietatea own a 49% stake in the company, and are said to be unhappy with two previous cancellations of the impending float.
The investment fund offered to cover all expenses of the IPO, and since then negotiations have been ongoing.
The Economic Ministry own the other 51% of Salrom. They said in September 2015 that it was a strategic company that must remain in state hands. The Ministry then requested Fondul Proprietatea to sell its shares back to the state.
Salrom is the sole producer of salt in Romania.