According to the Bulgarian privatization agency, privatization of Russe power plant was canceled until the government issues a new tender. The original tender won Russia's UES with EUR 178m bid, CEZ with EUR 36m finished second. The decision has been already suggested, however we are waiting for Bulgaria's decision on Varna power plant. Note that UES also won the Varna tender, nevertheless it did not agree on several conditions with the Bulgarian privatization agency. Bulgaria now has two options: (i) start 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. We believe that cancellation of Russe will not affect today’s trading as CEZ is still in game for Varna. We reiterate our Buy recommendation on CEZ.