CEZ has not decided on Bulgarian assets divestment yet



CEZ Group has not decided yet on sale of its Bulgarian assets as it awaits potential offers, Karel Kral, CEO of CEZ Bulgaria said in an interview for local media investor.bg. Recently, the Company has announced that based on the interest of several investors CEZ Group has decided to examine the market in relation to its equity investments in Bulgaria.

CEZ, a. s. in Bulgaria operates a distribution company – CEZ Distribution (3CZ BU), a retail electricity supplier and a wholesale trader – CEZ Electro (1CZ BU). Further, it owns a coal power plant in Varna with an installed capacity of 1,265 MW and two renewable sources plants.

Kral added that the Group is exploring what investor are ready to offer for those assets but no final decision on a sale has been made. “To a great extent it will depend on the offers we will receive”, he said.

Bulgaria still on the agenda

CEZ CEO noted that the company is currently in a very interesting situation since although claims for leaving the country were made, CEZ continues business as usual implementing investment plans, improving the quality of services and considering new business opportunities locally. “We do not stop thinking about the company development in Bulgaria, we do not stop thinking about our future in Bulgaria”, he said.

CEZ ambitions for 2017

Kral added that CEZ has been planning ambitious investment for 2017. “We will invest BGN 130 mln. for grid development, which is a considerable rise in investment compared to 2016 when our input was BGN 90 mln.”

CEZ CEO emphasized on the importance of integrating Bulgarian energy market with the markets in other countries in the region. “It will increase transparency, liquidity and would mean a better pricing for the country”, he noted.

CEZ shares on the Bulgarian Stock Exchange

Privatisation background

CEZ won the tender for electricity distribution and trading in Western Bulgaria back in 2004 with an offer of EUR 281.5 mln. The company provides service to 3 mln. consumers.

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