Hidroelectrica shareholders gave the green light to the takeover of the UCM Reşita business

The shareholders of Hidroelectrica (H2O) approved, in yesterday's meeting, the transaction by which the producer and supplier of electricity takes over the business of the Uzina Constructoare de Maşini Reşita (UCM), according to a company report published on the website of the Bucharest Stock Exchange (BVB).

According to a press release from Hidroelectrica in December of last year, the transaction aims to secure the asset base of UCM, unique in South-Eastern Europe and essential in the efficiency of Hidro's maintenance and re-engineering activities.

The business transfer includes the takeover of the ABC industrial production platform, the partial takeover of the Câlnicel production platform, the integration of the plant's specialists in the field of design, technology and execution, the assimilation of project know-how together with the documentation from UCM's own archive, as well as taking over the assets/equipment with machine tools and machinery necessary for the execution of new, complex equipment or the repairs and re-technological improvements of equipment in operation, according to the release.

The total price for the transfer of the ownership of the business and all the assets included in the transaction is 67.9 million lei.

For the takeover, Hidroelectrica will establish a limited liability company, which will be called Uzina de Construcţii Maşini Hidroenergetice, to which the business will be transferred from UCM Reşita.

Later, the company will merge with Hidroserv, in order to create an integrated supplier of products and services owned by Hidroelectrica. The social capital of the newly established company will be 119.6 million lei, an amount that includes the payment of the transaction and the support of the working capital until the merger with Hidroserv. UCM Reşita specializes in the manufacture and sale of hydro aggregates and auxiliary equipment, as well as in the provision of maintenance services and specialized technical assistance in the energy field.

The company is insolvent, and at the end of September last year it had negative equity of 393.4 million lei. The majority shareholder, with 96.8% of the company, is ICESA from Neuchatel, Switzerland.

Also yesterday, Hidroelectrica shareholders elected Petre-Iulian Nicolescu and Cristian-Nicolae Stoina as members of the company's Supervisory Board, with a mandate until March 28, 2027. The two were proposed by the Ministry of Energy, which owns 80% of the energy producer and supplier.

According to the CV published on the Hidroelectrica website, in the relatively recent period, Petre-Iulian Nicolescu was state secretary in the Ministry of Tourism and the Ministry of Economy; as well as director of privatization, post-privatization in the Department for Privatization and Administration of State Participations. He is a law graduate and has a master's degree in public administration.

Cristian-Nicolae Stoina is an associate teacher at ASE and has been part of the Hidroelectrica Council since May 2018.

Also, Ana-Barbara Bobircă was elected to the Hidro Council, until March 2027, her candidacy being proposed by the pension funds administered by Allianz Ţiriac. Ana Bobircă is a member of the Board of Directors of Transport Trade Services, partner in Central European Financial Services and CEO of InnovX BCR. He is a university lecturer at Bucharest Business School, within ASE, according to the CV on the Hidro website.

For the first nine months of last year, Hidroelectrica reported a net profit of almost 5.2 billion lei, 42% above that of the same period in 2022, while revenues increased by 32%, up to 9.5 million lei. The stock market valuation of the company amounts to about 57 billion lei.