Agency CIA cited the Bulgarian Privatization agency which announced that Austrian EVN won tender for a 100% state stake in heating plant Toplofikacija Plovdiv with EUR 32.1m bid, the second was French Dalkia International with offer of EUR 25m. No other bids were submitted. CEZ was one of the four short-listed companies in the tender, but did not offer binding bid. The installed heating capacity of Plovdiv is 330 MW.
Our view: Bulgaria is one of the CEZ’s target countries in SEE region. CEZ is participating in the other tenders for energy assets in Bulgaria, thermal plants in Ruse and Sliven. Given to size of the Plovdiv’s plant in comparison with the other acquisition in Bulgaria we do not expect any impact to share price. We reiterate our Buy recommendation for CEZ and fair value of CZK 1,075 per share.