May 18 (SeeNews) - Czech power utility CEZ Group has invited four candidates interested in acquiring its assets in Bulgaria to submit binding bids and bank guarantees for their price offers, local media reported on Thursday.
Two of the candidates are Bulgarian companies - Sofia-based Inercom Group and thermal power plant Bobov Dol, while the other two are Czech energy company Energo-Pro and a consortium between Turkish engineering holding STFA Yatirim and Bulgarian-based motor oils producer Prista Oil, Capital Daily newspaper reported, citing "various sources close to the process."
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Bulgarian-registered Energo Pro Varna, a wholly owned subsidiary of Energo-Pro, is engaged in power distribution in northeastern Bulgaria, where it is the sole licence holder, as well as in selling power to more than 1.2 million customers, including households and companies.
On Wednesday, CEZ Group said it has started negotiations with selected investors on the sale of its assets in Bulgaria. The company did not disclose the names of the selected companies.
Eight bids have been submitted for the purchase of CEZ Group's assets in Bulgaria by the end of April in the initial stage of the process, according to Capital Daily. Besides the four shortlisted candidates, four others have placed bids: Romanian power utility Electrica, Sofia-based electricity trading company Future Energy, local engineering conglomerate Minstroy Holding, and UK-headquartered energy company Elenilto.
CEZ Group assets in Bulgaria include CEZ Distribution Bulgaria AD, the public supplier of electricity and a licensed trader CEZ Electro Bulgaria, licensed electricity trader CEZ Trade Bulgaria and Varna thermal power plant. The operations of those companies are managed and coordinated by CEZ Bulgaria EAD.
Earlier on Thursday, Romania's energy ministry declined to comment on the reported bid of local power supplier and distributor Electrica [BSE:EL] for CEZ Bulgaria assets, citing confidentiality considerations. Romania's government holds a 48.8% stake in Electrica.
"More details on the matter cannot be disclosed to the public, as they are at the moment classified information which can jeopardise a possible transaction," the Romanian energy ministry said in response to a SeeNews query.
Last week, Romanian energy minister Toma Petcu said in a video interview for news portal DCnews.ro that Electrica had placed an offer to purchase CEZ's assets in Bulgaria.
In January, CEZ Group announced it had decided to study the options related to its equity investments in Bulgaria, based on the interest of several unnamed investors. It did not elaborate.
In July 2016, CEZ Group said it has filed a request for international arbitration worth hundreds of millions of euro against Bulgaria over the country’s failure to observe the investment protection provisions of the Energy Charter Treaty. CEZ Group added it had has repeatedly asked the Bulgarian government for speedy rectification of that state of affairs and for compensation for the damage caused, recalling that in November 2015 it had sent a notice to the Bulgarian government, in which it requested amicable settlement of the dispute.