HIDROSIND: "We have hints that the government wants to sell 51% of "Hidroelectrica"

• Vlădan: There have been no talks, "not even in the hallways", concerning the sale of a majority stake in "Hidroelectrica"

The government intends to sell 51% of "Hidroelectrica", like the officials of "Hidrosind" told us, who claim that they have received signals in this respect: "There have been some signals. It is a challenge addressed to the members of the government. Some time ago, a draft tender book for the selection of the private manager, included a stipulation that the manager would be an interim one, until the government will sell a stake of 51% in < Hidroelectrica >".

Florin Laurenţiu Vlădan, the head of the Office For The State's Interests and Industrial Privatization (OPSPI), told us that until now, there have been no talks, "not even in the hallways", concerning the sale of a majority stake in "Hidroelectrica".

He said that the bids for the selection of the intermediary in the sale of the 10% stake in "Hidroelectrica" on the Bucharest Stock Exchange will be opened next week, in line with the agreement concluded with the International Monetary Fund (FMI). Florin Laurenţiu Vlădan said that the two consortiums have submitted bids: "In the case of < Hidroelectrica > we have two bids. One consortium includes < Goldman Sachs >, together with < Erste Bank >, and the second one includes < Citibank > and < Societe Generale >".

Sources who were formerly in the management of "Hidroelectrica" consider that there are no intentions to sell a majority stake in "Hidroelectrica", "not even in the long run". However, they said: "Something may be happening. The new team in the ministry doesn't have the patience to understand what is happening within the company and they are in a hurry to act. They've come with a plan which might as well have been written on the back of a napkin, but I don't think that anybody in their right mind can think of selling 51% of < Hidroelectrica", not even in the long run".

Last week, "Hidrosind" sent a communiqué in which it states that private management would be the most inadequate and inefficient management solution for "Hidroelectrica".

Decebal Sulea, the president of "Hindrosind", said: "We feel that < Hidroelectrica > needs a professional manager, selected from within the company, with an appropriate salary and management agreement, which would allow him to pick his own executive team, as well as the heads of the hydroelectric plant and of the repair branches. The mandate of the general manager needs to be tied to the technical and economic performance of the company, in line with the part which < Hidroelectrica > plays in the national energy system and in Romania's economy. We refuse to accept the idea of an interim private manager who would stay in place only until 51% of the shares of < Hidroelectrica > got sold through the Stock Exchange, a situation where his salary would be inconsequential if his true goal were to simply sell < Hidroelectrica >. No manager brought from outside the company will ever be able to perform as good as one from within; on the contrary, we are sure that the most adequate solution will be found when it comes to < selecting a specialist > which would meet the < requirements > of the interest outside interest groups".

The management of "Hidrosind" also said that it is against the sale of 10% of "Hidroelectrica" through the Stock Exchange: "We feel that the initiative of the Ministyr of the Economy to sell a block 10% of newly issued shares in < Hidroelectrica > through an IPO and the listing of the company's stock on the BSE are the first step towards the Romanian state losing control of < Hidroelectrica >, an event which would affect the security of the national energy system. We hereby warn that, slowly but surely, the legal foundation is being laid to allow the selling off of the assets of < Hidroelectrica > as well as the privatization of the hydroelectric output capabilities of the country, its most important national resource which has not been privatized yet".

The representatives of "Hidrosind" have filed a preliminary complaint against the Government Decision 38/2012 which approved the strategy for the privatization of "Hidroelectrica". They have also filed a lawsuit against the Government Emergency Ordinance 109/2011 concerning corporate governance of state owned companies, alleging that it is unconstitutional. After having sent letters to the Ministry of the Economy, to the Prime Minister and to the Romanian president concerning the aforementioned aspects, "Hidrosind" announced that they would picket the prefectures of the counties where "Hidroelectrica" has branches, as well as the headquarters of the Ministry of the Economy, with the maximum number of protesters that will be allowed.