September 7, 2017 / 4:11 PM / 3 months ago

Romanian fund Fondul may sell stake in state hydro power producer

BUCHAREST, Sept 7 (Reuters) - Romanian investment fund Fondul Proprietatea said on Thursday it is considering selling its 20 percent stake in state-owned hydro power producer Hidroelectrica.

It said it has appointed Citigroup Global Markets and UBS Limited as financial advisers for a potential transaction.

The $2 billion fund, which is managed by global investment manager Franklin Templeton, was set up to compensate Romanians whose assets were seized under communism.

More than 70 percent of its portfolio consists of unlisted, mainly state-owned companies. Its stake in unlisted Hidroelectrica accounts for a third of its net asset value at 742 million euros.

Fondul has been trying to narrow the discount between its share price and its net asset value by buying back its stock, financed by divesting small stakes in listed utilities like oil and gas group Petrom or gas producer Romgaz .

“As part of its ongoing commitment to increase value for shareholders and improve the liquidity of the assets in the Fund’s portfolio, the Fund is reviewing strategic options regarding its ownership interest in ... Hidroelectrica,” it said in a statement.

“Our review is in its early stages and there is no defined timetable for any decision.” (Reporting by Luiza Ilie; Editing by Susan Fenton)

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