According to CIA news agency, Bulgarian government plans to sell 33% in electricity distribution companies. Currently it is unknown whether it will offer the stake to majority owners. CEZ expressed interest to increase its stake from current 67% in CEZ Electro Bulgaria, ER Stolicno, ER Sofija and ER Pleven. CEZ paid for 67% stake at three distribution companies EUR 281.5m. In January 2005 CEZ paid for 67% stake at three distribution companies EUR 281.5m, implying EUR 138.6m for the remaining 33% stake.
According to our valuation we estimated that the remaining 33% stake in three electricity distribution companies where CEZ has already 67% has value of EUR 250m, EUR 0.4 per share. Therefore we would like to see CEZ buying the remaining stake below EUR 250m. We see the news as neutral.