According to the Bulgarian government, exclusive talks over the TPP Varna sale have been concluded. CEZ offered to acquire 100% state stake at EUR 206m plus EUR 133.2m in environmental and other additional investments, which is more than its original bid of EUR 192.4m plus EUR 94.6m in additional investments. Final bid thus came 18% higher at EUR 339.2m vs. original bid EUR 287m. However, CEZ refuses to comment on the deal until the contract is signed. Note that UES won the Varna tender with a EUR 587m bid, although it did not agree on several conditions with the Bulgarian privatization agency, and eventually bowed out of the transaction. Although the negotiated price is higher than originally proposed, we see the news as neutral until we get more information about TPP Varna's financial figures. For the moment we reiterate our Hold recommendation.