As expected, the Slovak Cabinet approved Enel as the winner of the tender for the state's 66% stake in Slovenske elektrarne yesterday. Enel bid EUR 840m while CEZ came second with a EUR 690m bid. The Cabinet will now start exclusive negotiations with Enel regarding the privatization agreement. Both parties should agree by November 21 at the latest, according to Slovak Finance Minister Pavol Rusko. While we must point out that the bids were very complex and only limited information was available to the public, we saw CEZ's bids as too aggressive and therefore assess its failure to win the tender as positive for the stock.
Tomas Gatek, Patria Finance