Romania's Hidroelectrica takes over UCM Resita

The deal includes all UCMR assets, know-how, ongoing contracts, patents and licenses, rehabilitation and improvement services of hydro aggregates and auxiliary equipment, to which is added a number of approximately 450 employees, Euro Insol said in a press release on Friday.

Hidroelectrica announced in December its intention to take over UCMR for 67.88 million lei ($14.9 million/13.6 million euro) as part of its strategy to strengthen maintenance, enhance hydropower unit availability, and streamline electricity generation asset management.

The sale took place as a result of a reorganisation plan proposed, drawn up and implemented by the judicial administrator, Euro Insol said.

The company has been undergoing insolvency proceedings since 2011. UCM Resita's shares were suspended from trading on the Bucharest bourse in 2012.

Established in 1771, UCMR is one of the oldest industrial manufacturing units for construction of machinery in the energy sector in Romania and one of the oldest in Europe. The company is specialised in the engineering design, execution, refurbishment, and repair of hydro energy equipment, including Kaplan, Francis, and Bulb turbines, generators, excitation equipment, high-pressure oil installations, shut-off valves, and ancillary equipment.

UCMR has designed, manufactured and installed more than 90% of the hydropower equipment currently operated by Hidroelectrica.

The Romanian state holds a majority stake of 80.06% in Hidroelectrica, while the rest is in free float on the Bucharest Stock Exchange.

Hidroelectrica shares traded 0.08% lower at 127.9 lei as at 1548 CET on the Bucharest bourse on Monday.

(1 euro=4.96707 lei)