|  12.12.2012

Investment Daily Romania, December 12

Hidroelectrica to resume the refurbishment of Stejaru power plant; EU antitrust regulators investigate Transelectrica subsidiary OPCOM; SIF Oltenia (SIF5) sold OMV Petrom shares worth RON 9.4 mn

Transelectrica

Hidroelectrica to resume the refurbishment of Stejaru power plant

Hidroelectrica, the power generator in insolvency procedure, announced that it would resume the refurbishment process of Stejaru power plant. This project, amounting to around EUR 110 mn, was stopped in June when the company entered insolvency. The funding is coming from a syndicated loan managed by EBRD. Thus, Hidroelectrica will re-launch the tender for selecting the contractor. Stejarul power plant has an installed capacity of 210 MWh and was built in 1961. We view this piece of news as neutral for Fondul Proprietatea who is a minority shareholder in Hidroelectrica, since it fits into the strategy recently announced by the power generator. Hidroelectrica will focus only on investments which will enhance its capacity and will forgo investments with dual purpose (i.e. having social, ecological components).


EU antitrust regulators investigate Transelectrica subsidiary OPCOM

On December 11, the European Commission has opened formal antitrust proceedings against OPCOM (one of Transelectrica’s fully owned subsidiaries) and Transelectrica to investigate whether the operator of the only power exchange in Romania may be abusing its dominant position. The Commission is investigating OPCOM's requirement that all participants on the spot markets on the power exchange hold a Romanian VAT registration and consequently are established in Romania. The EU competition authority can fine companies breaching antitrust rules up to 10% of their global revenues or force them to change their business practices. EU?s investigation revolves around OPCOM. In 2011 OPCOM revenues stood at RON 16.8 mn, so even in the worst case scenario of a 10% fine on revenues, we do not expect a significant impact on Transelectrica. Furthermore, OPCOM is not included in Transelectrica’s consolidated financial statements. We see the news as neutral.


SIF Oltenia (SIF5) sold OMV Petrom shares worth RON 9.4 mn

According to a release to the stock exchange, SIF Oltenia (SIF5) sold 23.9 mn OMV Petrom (SNP) shares at an average price of RON 0.395. We remind that SIF Oltenia (SIF5) bought 20 mn shares at RON 0.37, two weeks ago when EBRD sold a 0.4% stake in OMV Petrom.

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