The deadline for submitting bids for privatization of two Romanian distribution companies (Electrica Oltenia and Electrica Moldova) is today (18 October). According to CEZ’s spokesman, the company is going to submit its bids for the two distributors. The short-listed companies are AES of the US, Germany's E.On, Spain's Union Fenosa, Greece's Public Power Corp and CEZ. According to Romanis’a economy Minister, the winner should be know before the end of the year
Electrica Oltenia has 1.36 million clients and sells 6.8 TWh a year, Electrica Moldova has 1.3 million clients and sells 4.1 TWh, and 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 limited information available, we would be comfortable with the bid of CEZ not exceeding significantly EUR 100 m.
Separately, CEZ starts trading with 10,000 shares lot from 20,000 as of today.
Tomáš Gatěk, Patria Finance