Czech utility group CEZ will begin the process of selling its assets in Romania in October and wants the transfer to be finalized or close to completion in 2022, company officials confirmed for local news agency Agerpres on September 9.
Earlier on the same day, CEZ announced in a press release that it was launching a preliminary “market test” before the process of selling its assets in Romania.
"Market testing precedes the invitation to receive non-binding offers, which is a preliminary phase for the asset sale process. After the market testing, we will evaluate the interest expressed, and we will officially begin the process of selling the assets in October," the company’s officials explained, quoted by Agerpres..
Potential investors expressing their interest in written form will be invited to submit non-binding offers. In Romania, CEZ aims to sell seven companies and keep only those with activities in the field of modern energy services (ESCO) and trading. These steps are in line with the new strategy previously approved by the parent company.
The seven Romanian companies subject to the market testing are: Oltenia Energy Distribution (power distribution monopoly), Ovidiu Development, Tomis Team, MW Team Invest (wind parks), CEZ Vanzare (electricity supplier), TMK Hydroenergy Power and CEZ Romania.
Oltenia Energy Distribution operates the power distribution network in the Oltenia region, in Southern Romania, while CEZ Vanzare supplies electricity and gas to 1.4 million clients in Romania. The group’s local operations include 600 MW of wind power capacities and 22 MW of hydropower capacities.
CEZ operates the biggest wind farm in Romania, which required EUR 1.1 billion investments. The group’s operational profit - EBITDA in Romania amounted to RON 396 million (EUR 85 million) in 2018.
Potential investors can express their interest for the whole group of companies or individually for any of the companies. French Investment bank Societe Generale will carry out the market interest testing exclusively for CEZ.
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