As expected, CEZ confirmed it has filed final bids for the two Romanian distribution companies (Electrica Oltenia and Electrica Moldova) yesterday (18 October). According to Romanian privatization agency OPSPI only CEZ and E.On of Germany filed final bids for the two distributors, which increases CEZ's chances in the tender. Spain's Fenosa, the Greek Public Power Corporation and the American AES did not submit bids. The winner should be known before the end of the year. Source: CTK
Electrica Oltenia has 1.36 million clients and sells 6.8 TWh a year, while Electrica Moldova has 1.3 million clients and sells 4.1 TWh. The distributors operate in the south western and north eastern parts of Romania. The state is selling a 24.6% stake in each, and the investor would have to raise its stake to 51% by increasing the companies' equity. The other two regional suppliers, Electrica Banat and Electrica Dobrogea, were recently purchased by Italy's Enel for EUR 112 m. Based on the limited information available, we would be comfortable with a CEZ bid not significantly exceeding EUR 100m.
Tomáš Gatěk, Patria Finance