CTK informed that CEZ is 1 of 12 companies interested in 100% state stake in Bulgarian power plant in Plovdiv. Bulgaria's privatization agency should announce short-listed companies by 11 September, with deadline to submit their bids until 9 October. Plovdiv has combined production of thermal energy - steam and hot water and only limited production of electricity. Installed capacity of electricity is less than 1% of CEZ's total installed capacity.
Our view:
We see the interest of CEZ as obvious given it has already bought 3 distribution companies there in 2004 and TPP Varna earlier this year. Buying power plant in Plovdiv could bring some synergies and could strengthen position of CEZ in targeted SEE region. For the moment we would see the news as neutral, however intensified interest from competition could bring the proposed price from interested parties up.