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.