CEZ submitted binding bid for the only Macedonian distribution company ESM Distribucija. State plans to sell its 90% stake. Besides CEZ, Austrian EVN placed the bid and previously RWE and Enel were also interested. The winner should be announced in next days. We estimate price for 100% stake for c250m EUR what incicates some EUR 350 per customer. ESM serves to 721k customers and sells 4.4 TWh annually. CEZ has good experience in the integration and restructuralization of newly acquired assets. We believe that the energy sector in the SEE region has the growth potential, given the expected local GDP development. Macedonia borders with Bulgaria where CEZ recently acquired three distribution companies and may profit form synergy effects. We believe that news could have positive impact for today’s trading with CEZ and reiterate our Hold recommendation and fair value CZK 864.