CEZ closer to the sale of its assets in Bulgaria



The Czech energy company CEZ has picked a Bulgarian-Indian consortium as a buyer of its assets in Bulgaria, according to media report. No official statement by the company yet apart from information it continues negotiations with several potential buyers.

The amount of the deal quoted by local and Czech media is c.EUR 320m. The assets include two public listed companies.

Another bidder for the assets is Energo-Pro a.s., which received a loan guarantee from its Bulgarian subsidiary, the energy distribution company Energo-Pro, for EUR 350 million earlier this year.

CEZ sells a power plant in Varna

CEZ Distribution Bulgaria (3MZ BU) and CEZ Electro Bulgaria (1CZ BU) which are the largest electricity distributor in Bulgaria with more than 3 million clients and electricity trader, respectively. 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 already sold its thermal power plant in the city of Varna for c.EUR 50 million and was looking for investor for its main assets. The price of EUR 320m is close to current market quotes of the stakes in the two public listed companies. Both of them reported very good earnings since the beginning of the year.

Check the latest equity research reports by ELANA Trading