The announced recapitalization of HET is a robbery of small shareholders

12.01.2022. / 16:53

TREBINJE – Management of “Elektroprivreda Republike Srpske” (ERS) has so far lowered prices and caused a negative perception of ERS shares on the Banja Luka Stock Exchange, and now wants to recapitalize “Hidroelektrana na Trebisnjici” (HET) at such downturned market prices, with only one with the aim of deliberately stealing half (46.5 percent) of the value of the shares of small shareholders of HET, according to the Association of Minority Shareholders of the Energy Sector (UMAES).

Photo: Agencies

Small shareholders are outraged by the latest recapitalization of HET

“Several years ago, Milorad Dodik, as the president of the Republika Srpska, said that the actions of the small shareholders of ERS would be worth a lot. Small shareholders have been patiently waiting for that time since 2005, for 17 years. Instead of one day waiting for that hour, they are appalled by the announcement of the insidious recapitalization of HET at a price of 0.29 KM per share. Therefore, at a price 8.2 times lower than the price of the book value of shares, which is 2.3801 KM per share “, says the representative of the Tripko Krgović Association for the portal CAPITAL.

He adds that small shareholders have been patiently waiting for the liberalization of the electricity market and that the prices of ERS shares will be higher than the bookkeeping.

“ERS shares are the most significant shares on the Banja Luka Stock Exchange because ERS is by far the most valuable company on the stock exchange in the Republika Srpska. The managements of ERS subsidiaries, in cooperation with the Parent Company, bad management, making losses instead of achieving the approved return on capital, created distrust in the future of ERS subsidiaries and lowered stock prices on the stock exchange. “, says Krgović.

Now that prices have fallen and caused a negative perception of ERS shares, he adds, they want to recapitalize at such downturned market prices with only one goal, which is to deliberately steal half (46.5 percent) of the value of shares of small shareholders HET- a.

The current capital of HET is 916,738,449 KM and is divided into 385,164,196 shares (2.38 KM / share), and the planned issue of shares would be 435 million shares at a price of 0.29 KM per share, which is 126,150 .000 KM – amount of recapitalization “, explains Krgović.

He adds that ERS experts should publicly say that they have calculated that the majority package (53.5 percent) in HET, whose installed capacities are 313 MW + future 159 MW in HPP “Dabara”, is worth only 126 million KM?

“According to the current construction costs of one MW of installed capacity (about two million euros per MW), the total value of HET would be estimated at approximately two billion marks.”, claims Krgović.

He asks if there is any control mechanism in the state that will stand in the way of an unprecedented fraud?

“ERS will certainly say that small shareholders have the right to preemptive purchase, but it is difficult to expect that any small shareholder will invest one extra cent where he is continuously harassed and robbed, which is of course an enterprise plan – planned robberies of small shareholders. We thought that the attempted robbery would not happen again after the small shareholders were robbed of their assets during the separation of distribution companies and statements from the highest addresses that shareholders in the sector should not worry because better times are coming, but the Holding’s appetites are clear: completely marginalize minority shareholders and devalue their property “, Krgović is categorical.

“Do you think we are naive and blind?”

He says that it is necessary to enable subsidiaries to achieve a return on capital that is guaranteed by the regulations.

“Protect us with the statute from the arbitrariness of the Holding, so you will be able to collect as much money as you want on the stock exchange from small shareholders!” The total capital of HET after the recapitalization would be 1,042,888,449 KM (in 820,164,196 shares) and the book value of the share would be 1,127 KM, while before the recapitalization it amounted to 2.38 KM. Thus, small shareholders should lose almost half (46.5 percent) of the book value of their shares through recapitalization, a deliberate salary! “, he states.

He asks if the management of the ERS really thinks that the citizens and small shareholders of the ERS are so naive and blind? Do they expect to be supported in this endeavor?

“If the management of ERS did not aim to take half of the value of HET shares from small shareholders, it should make the recapitalization by initial public offering, sale of bonds or with a strategic partner, for example Elektroprivreda Srbije or other interested parties, at a price of about two marks action! We don’t know where the ERS management got the urge to rob small shareholders and citizens of Republika Srpska? You should know that things like this can never go unpunished in the finals. Why don’t you try to make a decision for the benefit of all shareholders and citizens? “Krgović asks.

The ERS claims that the recapitalization does not mean privatization

“Elektroprivreda RS” claims that there will be no privatization of HET and that the Parent Company will buy the shares that HET intends to issue. They also point out that it is a “debt”, although it is clear that it is not and that the sale of shares means a change in the ownership structure.

The parent company “Elektroprivreda Republike Srpske” has provided funds to use the right of first refusal to buy shares issued by HET in the percentage of 65 percent and thus retain the current percentage of ownership in HET even after the procedure, which means that any story absolute untruth and lie about the privatization of HET “, said the director of the Directorate for Economic and Financial Affairs of the ERS, Blagoje Šupić, ATV reported.

He did not explain how the parent company will have the same percentage of ownership after the purchase, as well as how the sale of the rest of the shares, which are planned to be issued, will affect the ownership structure in HET.

In his statement, the executive director of HET, Ilija Tamindzija, complicated everything even more.

“This is a way of providing the missing funds for HPP Dabar, I would say the most elegant way where HPP in Trebisnjica will not have any additional costs in terms of interest, or anything else because the parent company has already provided funds. The parent company HET has provided funds and will recapitalize its practically subsidiary company, which was established due to easier and faster realization of HPP Dabar ”, Tamindzija told H1.

He did not want to specify the exact amount, but added that HET will participate in the construction of “Dabra” with 40 percent, while 60 percent of the money will be provided through credit funds.

This information is not accurate because the construction will be financed with a loan by the Export-Import Bank of China (CEXIM Bank) in the amount of 369.7 million marks, which is 85 percent of the value of the hydroelectric power plant. It is envisaged that 15 percent of the value (about 65.3 million KM) will be financed by the company “HE Dabar”.

However, HET added other costs that they plan to pay for the project of the same name.

We remind you CAPITAL found that HET plans to recapitalize by issuing shares with a nominal value of as much as 435 million marks, which is 50 million KM more than the current total value of the company’s share capital.

The recapitalization of the company means privatization of that company, said capital market experts.

CAPITAL: Svjetlana Šurlan

Source: – Informacija je capital by

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