As expected, the Bulgarian Cabinet has approved the sale of three distributors to CEZ. The agreement has to be signed within ten days. The first payment of CZK 1.8bn (20% of the total price) is to be paid on the day of signing the contract. Note that CEZ won the tender for the Western group in July 2004 for EUR 281.5m. Neutral.
Source: CTK
Separately the Czech Ministries of Industry and Finance are planning to extend the deadline for selling the state’s 55.4% stake in the biggest Czech coal mines Severoceske doly (SD) until the end of February 2005. Note that CEZ owns 37.20% in SD. There is a plan for CEZ to form a joint venture with the Czech Appian Group for buying the remainder of the state’s stake. Neutral.
Source: Bloomberg
In other news, the Slovak government has agreed with Enel on the Slovenske elektrarne sale conditions. The Cabinet should vote on the sale contract on November 24. Enel offered EUR 840m for the state’s 66% stake. CEZ came second in the tender with an offer of EUR 690m. Neutral.
Source: Reuters
Tomáš Gatěk, Patria Finance