According to CTK, Bulgarian Prime Minister confirmed that Bulgarian privatization agency continues unofficial talks with CEZ over privatization of TPP Varna. He also added that possibilities to start official negotiations are very probable. Note that UES also won the Varna tender, although it did not agree on several conditions with the Bulgarian privatization agency. Bulgaria now has two options: (i) start official negotiations with the second bidder in the tender, CEZ or (ii) to issue a new tender. CEZ offered EUR 287m for Varna, implying an EV/EBITDA of 22x compared with UES’s EUR 580m, an implied EV/EBITDA of 44x. As no official statement has been released so far, we see this news as neutral and reiterate our Buy recommendation on CEZ.