The appointment of the board of Hidroelectrica, postponed

The General Shareholder Meeting of Hidroelectrica, scheduled yesterday for the appointment of the new Board of Directors, was not held due to lack of quorum, because the Ministry of Energy didn't attend the meeting, according to market sources, according to which the second meeting scheduled for today may not be held either.

Greg Konieczny, the manager of the Proprietatea Fund, thinks that the decision will be postponed, as the recently appointed government needs to familiarize itself with the list of candidates.

At the end of last year, the Ministry of Energy has requested the inclusion of six candidates on the list for the Supervisory Board of Hidroelectrica.

The ministry's proposals were: Elena Popescu, Romeo Nicu Susanu, Ilinca von Derenthall, Marcel Cobuz, Mihai Daniel Aniţei, Ionuţ Purica.

In December, the term of the current Board was extended by four months. The current members of the Supervisory Board are: Ana Bucheru, Elena Voicu, Nicu Romeo Susanu, Ionuţ Purica, Robert Cosmin Pană, Mihai Daniel Aniţei, Oana Truţă.

Greg Konieczny says that the appointment of a new board and then the selection of new executives are very important in order to prepare the process for the listing of Hidroelectrica.

Mr. Konieczny said: "The new government has just been appointed. I think that the new government intends to make this transaction (ed. note: the listing of Hidroelectrica). Considering the current situation, we can expect the listing of Hidroelectrica in the second half of the year, perhaps in the third or the fourth quarter.

But that also depends on the commitment to the IPO and its preparation.

The first key steps would be the appointment of the new board and then for it to select the team of executives. Without board and executives it will be very difficult to complete and promote this transaction to international investors, which is a very important part.

Also very interesting is the Government's project to create the National Development Fund. This could represent a «game changer» not just for Hidroelectrica, but for the entire process of taking state-owned companies public, as well as for the stock market, because it will be easier to bring in more IPOs".

Gabriel Dumitraşcu, the former head of the privatization department of the Ministry of Energy, who ran for the Supervisory Board of Hidroelectrica, recently filed a criminal complaint against Victor Vlad Grigorescu, the former minister of energy, with the Prosecutors' Office of the High Court of Cassation and Justice, alleging abuse in office. Mr. Dumitraşcu reported irregularities in the procedures for the recruitment of the executives of Hidroelectrica.

When asked whether these challenges could impact the appointment of the new Board of Directors, Greg Konieczny told us: "I don't think it is the challenges that are so important, what's more important is the fact that the Government has just barely been appointed and it would be good if it took the time to analyse the candidates on the shortlist and interview them, to make adjustments to the list or not. The next four years of mandte of the management of Hidroelectrica will be very important for the company. I don't think that rushing the decision is the correct approach. The delay shouldn't exceed one month. The government must become familiar with the candidates. That is the correct way".

Energy Ministry owns 80% of the shares of the company, and the Proprietatea Fund - 20%