The Romanian Government will not pursue the merger plan of the energy and coal producers into Electra and Hidronergetica, according to a document that was transmitted by Fondul Proprietatea to the Bucharest Stock Exchange (BVB). However, the Government will try an alternative restructuring plan for the energy and coal sector that involves the creation of two smaller companies, Complexul Oltenia and Complexul Hunedoara.
The project for establishing Electra and Hidronenergetica was approved by the Romanian Government in 2009, but was blocked in court by Fondul Proprietatea, a minority shareholder in most of the state-owned energy companies, as well as by trade unions and private companies.
The sole administrator of Fondul Proprietatea, Franklin Templeton Investment Management, is still pushing for IPOs of Hidroelectrica and Nuclearelectrica on the Bucharest Stock Exchange. This should increase operating efficiency and transparency of the companies and the entire generation sector, argues the administrator of Fondul Proprietatea. This could also ease financing conditions for future development plans.