March 9 (SeeNews) - Czech energy company CEZ said on Friday it is ready to consider a possible role of the Bulgarian state in the deal for the sale of its assets in Bulgaria to Sofia-based company Inercom.
Inercom, with which CEZ signed the deal last month, submitted an official enquiry whether it is possible for the Bulgarian state to enter into the transaction, CEZ press officer Alice Horakova said in a statement.
The enquiry was submitted during negotiations CEZ and Inercom held in Prague from Tuesday until Friday.
"Even though the Bulgarian government did not express interest in entering into the sales process, which was running last year, CEZ will consider the request presented by our business partner and will check the option," Horakova said. "The main purpose of the meetings was preparation of documents for the application to the Bulgarian anti-monopoly office (KZK)."
Last month, CEZ Group said it signed a contract for the sale of its assets in Bulgaria with Inercom for an undisclosed sum after the group's supervisory board granted consent to the transaction. The deal sparked a heated debate between the Bulgarian government and opposition regarding the financing of the purchase and the capability of Inercom to ensure the smooth operation of the companies it is buying.
As political tensions mounted, Bulgaria's finance minister Vladislav Goranov said last week that the government is willing to acquire a controlling stake in the assets in the country, which the Czech energy group had sold to Inercom. Also last week, Inercom owner Ginka Varbakova said after a meeting with Bulgarian prime minister Boyko Borissov that her company is willing to agree on participation of the Bulgarian state in the deal.
The negotiations between CEZ and Inercom will will continue in a few weeks, during which the parties to the deal will analyse "all possible outcomes of the potential entry of the Bulgarian state into the process," according to the statement
The deal comprises seven companies - power distributor CEZ Razpredelenie [BUL:3CZ], power supplier CEZ Electro Bulgaria [BUL:1CZ], licensed electricity trader CEZ Trade Bulgaria, IT services company CEZ ICT Bulgaria, solar park Free Energy Project Oreshetz, biomass-fired power plant Bara Group and CEZ Bulgaria, which manages and coordinates the operations of the group's Bulgarian units.
In 2017, CEZ received several indicative offers for its assets in Bulgaria and launched negotiations on the potential divestment. Inercom submitted the highest offer and CEZ subsequently started exclusive negotiations with the company.
Inercom Bulgaria EAD has said it is a special purpose vehicle incorporated for the purpose of the transaction with CEZ. It is wholly-owned subsidiary of Sofia-based Inercom Investments, according to data from the Bulgarian commercial register. The company has a registered capital of 50,000 levs ($31,500/25,600 euro). It manages six solar parks in southern Bulgaria with a total capacity of 23 MW and is also developing a project for a 80 MW solar park.