CEZ reportedly considers selling its Romanian assets

Czech energy group CEZ, controlled by the Czech state (which owns a 70% stake), considers selling its businesses in Romania, according to unofficial local sources quoted by local Ziarul Financiar. The company’s representatives have not confirmed the information.

The group has already informed the Romanian authorities about its intention and a representative from Prague headquarters is reportedly expected next week to discuss the issue in Bucharest.

In Romania, the group has electricity distribution and supply subsidiaries as well as a large-sized (600MW) wind farm.

CEZ shareholders were reportedly dissatisfied with the group’s strategy in Eastern Europe and, during a general meeting, accused the management that it couldn’t achieve long-term profitability in some markets such as Romania, Albania, Bulgaria and Turkey, Ziarul Financiar daily reported. Moreover, it seems that the Czech state would like CEZ to use its financial resources to build new nuclear reactors in the Czech Republic.

CEZ had already started in 2017 procedures to sell its Bulgarian subsidiary upon long-lasting disputes with the authorities. Bulgaria’s competition regulator CPC fined the local power supply and distribution units of Austria’s EVN and Czech energy company CEZ for the abusing of their dominant position on the market. CEZ has approved the sale of Bulgarian assets to local family-owned Inercom Bulgaria, a deal banned by authorities given buyer’s weak capacity to support such business. More recently, insurance group Eurohold emerged as CEZ’s preferred buyer, but Bulgarian authorities question again the buyer’s capacity and suspect Russian financing.

(Photo source: Facebook/CEZ Romania)