Romanian electricity holding in talks to take over gas supplier from Czech billionaire

Romanian electricity distribution and supply group Electrica, whose biggest shareholder is the Romanian state with a 49% stake, is reportedly negotiating for the takeover of gas supply company Premier Energy, owned by the Czech billionaire Jiri Smejc. Talks are held in Prague, sources familiar with the negotiations told local G4media.ro.

Premier Energy operates in the southern part of Romania. The company had a turnover of EUR 103 million in 2018, almost four times higher than in 2017, and a net profit of close to EUR 6 million, according to official data from the Finance Ministry.

Electrica’s representatives didn’t confirm the negotiations but said the group is constantly analyzing opportunities in the market, including potential acquisitions. Electrica also negotiated a potential acquisition of the electricity distribution and supply companies in the Republic of Moldova, from Spanish group Union Fenosa, but several offshore companies controlled by Jiri Smejc bought those companies for EUR 25 million.

Smejc is one of the richest people in the CEE region. In the past, he owned the NOVA TV station in the Czech Republic which he later sold to CME, which also owns Romanian group PRO TV. He also owns an island in the Maldives, which he turned into a luxury resort. Some Romanian politicians have reportedly spent their holidays there in recent years, according to G4media.ro.

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