Five bidders reportedly in race for CEZ assets in Romanian

By bne IntelliNews June 30, 2020

India Power Corporation, Hungarian power group MVM, German utilities group E.ON, and the German financial services group Allianz are reportedly the bidders that are competing against the Romanian state-controlled consortium Hidroelectrica-Electrica-SAPE for the Romanian assets of Czech utility group CEZ, Ziarul Financiar daily reported.

The Romanian consortium reportedly submitted its binding offer last week, unofficial sources familiar to the deal told Ziarul Financiar.

The same sources estimate that the power distribution business of CEZ Romania, eyed by Electrica, is valued at approximately €500mn, the wind energy farm, which stirred the interest of Hidroelectrica, at about €400- 500mn, and the electricity supply part at about €50mn.

The figures are smaller than those reported previously, based on reports from CEZ to investors.

CEZ has estimated the aggregated equity of its Romanian subsidiaries, which are up for sale, at €1.07bn, according to a presentation prepared for prospective bidders and consulted by Economica.net.

The two wind farms (347.5MW+252.5MW) account for nearly two-thirds of the total value of the CEZ assets in Romania: €654mn combined equity. They also generate half of the aggregated Ebitda (€58mn).

The stake in the electricity distribution company CEZ Oltenia, which produces €50.8mn Ebitda, is valued at €385mn.

The three smaller CEZ companies in Romania are CEZ Vanzare (electricity supply, valued at €18.6mn), TMK Hydroenergy Power (22MW micro hydropower plants, worth €9.5mn) and the holding company, valued at €8.25mn.

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