According to CTK, CEZ decided not to submit its bid for the JV project with PKE regarding extension of installed capacity to 440 MW from current 200 MW in Halemba power plant. CEZ had reportedly different idea of some planned transaction conditions.
Our view:
Polish market still remains the main target for CEZ in its expansion policy in CEE&SEE region. CEZ sticks to its picky conditions in order to deliver value to its shareholders. Note that this was only deadline for not-binding bids and CEZ could still re-enter the tender if conditions change. The total cost of transaction is expected to reach cEUR 200m. We rate the news as neutral given availability of other project in the region where CEZ is participating, mainly in SEE.