Macedonian PM declared Austrian EVN as a winner in the tender for the only Macedonian distribution company AD ESM. Price for 90% stake is EUR 225m, which indicates EUR 347 per customer. Moreover EVN has to invest in the company EUR 96m in the next three years. AD ESM serves 721k customers and sells 4.4 TWh annually. Besides EVN, CEZ and Italian Enel placed the binding bids. We see this news as slightly negative in connection with the CEZ’s expansion efforts, especially when the price per customer was not so high when we compare it to the anticipated price in Romanian Electrica Muntania Sud. Therefore we reiterate our Hold recommendation for CEZ.