Sovereign Development and Investment Fund to Receive 1.85 Billion RON Cash Injection
The Sovereign Development and Investment Fund (FSDI) will receive from the state minority or majority stakes in 27 companies, as well as a cash contribution to the share capital of 1.85 billion RON, which is to be paid in gradually over 3 years.
The Ministry of Finance has published the list of the 27 companies that will be transferred to the Fund. These include Romgaz, Hidroelectrica, Loteria, OMV Petrom, Electrica, Imprimeria Nationala, and the National Salt Company (Societatea Nationala a Sarii).
The value of the stakes to be transferred to the Fund was calculated in 2015 at 45 billion RON, representing the shares at book value. The value of the holdings is to be recalculated, as the old valuation is not appropriate in the current context, according to representatives of the Ministry of Finance.
The legislative project regarding the Sovereign Fund was put up for public debate by the Ministry of Finance; however, before being sent to Parliament and the Government, it requires an opinion from Eurostat, the statistical office of the European Union.
The Fund’s share capital will consist of in-kind contributions, represented by the share packages held by the state in the profitable companies that will be in the FSDI portfolio, as well as a cash contribution amounting to 1.85 billion RON.
The share packages are transferred into the ownership of the FSDI, and the Fund will be able to freely dispose of them as its own assets. However, the FSDI will not be able to alienate these shares in any form if this action leads to the loss of the state’s position as a majority shareholder in the company in question.
The cash capital will be paid as follows: 50 million RON upon the establishment of the Fund, and the remainder within 3 years of establishment, depending on the needs of the FSDI.
The Fund aims to develop and finance, from its own and attracted funds, profitable and sustainable investment projects in various economic sectors, through direct participation or through other investment funds or investment companies, alone or together with other institutional or private investors, as well as to manage its own financial assets in order to obtain profit.
List of companies and Stakes:
1 Engie Romania 34.0065%
2 Soc. de Distributie si Furnizare a Energiei Electrice – Electrica 48.78%
3 Delgaz Grid 13.5147%
4 E.ON Energie Romania 31.82%
5 Biofarm 1.1619%
6 Chimcomplex 12.8956%
7 OMV Petrom 20.639%
8 Telekom Romania Communications 45.9897%
9 Antibiotice 53.0173%
10 National Company for the Control of Boilers, Lifting Installations and Pressure Vessels 100%
11 National Company Romanian Lottery 100%
12 National Salt Company 51%
13 IAR 72.19%
14 Oil Terminal 59.6222%
15 Cupru Min 100%
16 National Company Unifarm 100%
17 National Mineral Water Company 100%
18 National Company Administration of the Maritime Danube Ports 92.3%
19 Investment Company for Tourism 100%
20 National Natural Gas Company Romgaz 70.0071% 2
1 Hydroelectric Power Production Company Hidroelectrica 80.0561%
22 National Company Bucharest Airports 80%
23 National Company Nuclearelectrica 82.4959%
24 National Company National Printing House 100%
25 National Company Maritime Ports Administration 80%
26 Energy Participation Management Company 100%
27 Conpet 58.7162%.
Source: Profit
Frequently Asked Questions
What is the total cash contribution to the FSDI?
The Sovereign Development and Investment Fund will receive a cash contribution of 1.85 billion RON, to be disbursed gradually over a period of three years.
Which major companies are included in the FSDI portfolio?
The portfolio includes 27 companies, such as Romgaz, Hidroelectrica, OMV Petrom, the Romanian Lottery, and Nuclearelectrica.
Can the FSDI sell its shares in these companies?
The FSDI can manage its assets freely but is prohibited from selling shares if such an action would result in the state losing its majority shareholder position in that company.