According to news agency CIA, Polish Ministry of National Treasure received CEZ’s bid for 50% state stake in utility company ZE PAK. ZE PAK’s brown coal power plants are among the oldest in Poland: Konin (43 years) with 518 MW of installed capacity, Adamow (37 years) with 5*120 MW, Patnow (34 years) with 6*200 MW. Thus the total installed capacity is 2,318 MW. Besides mentioned power plants CEZ intends to buy also two brown-coal mines, which supply power plants with coal. CEZ expressed its interest in ZE PAK already at the end of 2004, however complicated legal issues prevented its earlier privatisation. RWE, Iberdrola and Vattenfall are among other bidders.
Our view:
As Poland is CEZ’s main expansion market in CEE&SEE region we would see CEZ’s acquisition activity in Poland positively, subject to the offered price. Moreover, breaking the mining limits in Czech Republic is still unclear as the centre-right coalition is against it, CEZ can secure other energy sources abroad.