Croatian
state-owned energy utility HEP has picked Morgan Stanley, Sberbank and UniCredit
as advisers on plans for an initial public offering (IPO), Zagreb-based media
reported on Monday.
The government's stake in HEP should drop to 80 after
the IPO, during which the number of the company's shares will increase by 25%,
news daily Poslovni reported, not naming a source.
Last week, Croatia's
economy ministry told SeeNews that the government will consider an option for an
IPO of up to 25% of HEP.
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.
Also last 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 ($282.5 million/260.3 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.