CEZ interim CEO, P. Voboril, said in an interview for the Euro weekly that possible acquisitions in Bulgaria (the state is selling electricity distributors) are worth of CZK billions and the possible investment in Slovenske elektrarne (CEZ is taking part in the SE privatization tender) would be worth CZK tens of billions. Moreover, further acquisition targets are possible in Poland (both electricity production and distribution), Hungary and even in Austria and Germany, he said.
While the indication of Bulgarian distributors’ value is in line with our rough estimates, our estimate of SE’s value is significantly lower as SE remains highly levered. We understand Voboril’s comment as that (i) he indicated an acquisition price after a possible, but still undecided, state bailout of SE or, alternatively, (ii) the value of investment includes CEZ’s participation in the post-privatization debt restructuring in SE.
Jan Hájek, Patria Finance