According to Bulgarian privatization agency, CEZ is one of four short-listed companies for 100% state stake in heating plant in Plovdiv, Bulgaria. Besides CEZ, there is EVN, Dalkia Int. and consortium of Gazprom and Overgaz. Relevant asset includes not only heating plant with 214 MW of installed capacity but also small thermal power plant. Plovdiv’s 2005 sales were EUR 17.3m. The deadline for binding bids is set on 9 October.
Our view:
We see the news as neutral as we think market was expecting CEZ to be short-listed as it is not new player on Bulgarian market. Note that CEZ has already 3 distribution companies there since 2004 and is finalizing acquisition process of TPP Varna. Thus buying Plovdiv’s plant could bring some synergies and further strengthen CEZ’s position in SEE region.