Financial market sources say CEZ has until the end of March to assess the final financial offers and answer investors. The same sources say Hidroelectrica is in a good position, with the state-run electricity company seeking to buy the wind farm and supply business of CEZ.
Electrica, the other state-run company, wants to buy the energy distribution business in Oltenia, but the preliminary financial offer is below expectations. Germany’s E.ON is in the best position for the distribution business, the quoted sources added.
Everybody is wondering whether Hidroelectrica and Electrica can secure the approval of the Economy and Energy Ministry as the main shareholder for the final financial bids to submit.
Consultants are wondering if the economy and energy minister, who is now serving as an interim position after the Orban government has been dismissed, many make such a decision, or the decision requires a full-fledged minister.
Hidroelectrica is working on the final bid with audit and advisory firm EY and law firm Stratulat Albulescu. It may submit a bid for all the operations of CEZ and then sell the distribution business.
The other investors interested in CEZ are investment funds Macquarie (Australia) and DWS (of Deutsche Bank). The list of those interested also includes OMV Petrom and Hungary’s MVM.
CEZ wants to exit Romania to focus on development of nuclear plants in the Czech Republic. The 70% state-owned CEZ group will sell its operations in Romania, Turkey and Poland. CEZ arrived in Romania in 2005, when it bought electricity distribution company Electrica Oltenia SA.
CEZ Vanzare is the main supplier of electricity in SW Romania, as well as natural gas supplier and serves more than 1.4 million household and industrial consumers.
CEZ also owns the largest onshore wind farm in Europe in Fantanele, Cogealac and Gradina in Dobrogea, SE Romania, a EUR1.1 billion investment.
(English version by Loredana Fratila-Cristescu)