According to CTK, Romanian Government won’t sell remaining three smaller distribution companies from Electrica Group, this year; however prospects for next year are optimistic. The reasons behind such a delay are not known. Nonetheless Romanian Government still considers the form of sale and one of the possibilities is also via capital market. Romania has already sold 5 out of 8 companies for cumulated EUR 1.2bn to E.On, CEZ and Enel.
Our view:
As CEZ already bought Electrica Oltenia last year, and was bidding for Electrica Muntenia Sud this year, however failed to propose highest bid, we expect it will be also interested in the remaining distribution companies. Although remaining ones are small there were speculations they may be sold in 2+1 package. Prices for assets in SEE region has significantly increased over last year. CEZ paid EUR 217/customer at Oltenia, however Enel already EUR 1,212/customer at Muntenia Sud. We see the news as trading neutral for CEZ.