The Croatian government will
consider an option for an initial public offering (IPO) of up to 25% of state-owned
energy utility HEP, the country's economy ministry said on Thursday.
A decision whether or not to opt for an IPO would be made after an assessment
of the potential risks and benefits and will also depend on the conditions on
the capital market, a spokesperson for the ministry said in a emailed response
to a SeeNews inquiry, adding that the exact size of the HEP stake that will be
offered will be determined after conducting a detailed analysis.
If the government should decide to go for an IPO, the first step would be to
hire an external consultant to help develop this plan.
The proceeds from the IPO would be used to strengthen HEP's position on the
local as well as on foreign markets, especially in the region, the spokesperson
said.
Earlier this week, local media quoted economy minister Ivan Vrdoljak as saying
that HEP should be eyeing acquisitions in Slovenia, Bosnia, Montenegro, Hungary
and Italy and that this expansion opportunity will exist only for one or two
more years.
HEP's consolidated net profit surged to a preliminary 1.99 billion kuna ($284.3
million/260.1 million euro) in the first nine months of 2014 from 855.2 million
kuna a year earlier, data of Croatia's state asset management office, DUUDI,
showed.
The utility's total revenues fell 9.9% to a preliminary 10 billion kuna through
September. The company is planned to post a net profit of 740.8 million kuna in
2014, the preliminary data showed.
HEP group owns and operates over 4,000 MW of installed generation capacity and
974 MW of heat production capacity, including 25 hydroelectric plants and eight
thermal power plants fired by oil, natural gas or coal.
Source: SeeNews
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