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Nov 08, 2017 17:02 EEST
SOFIA (Bulgaria), November 8 (SeeNews) – The share prices of CEZ Distribution Bulgaria [BUL:3CZ] and CEZ Electro Bulgaria [BUL:1CZ], both units of Czech power utility CEZ Group, recorded sharp increases on Wednesday, following reports that CEZ is close to completing the sale of assets in Bulgaria.
As at 1540 CET on Wednesday, CEZ Distribution Bulgaria shares traded 12.72% higher at 283.49 levs ($168.1/144.9 euro), while CEZ Electro Bulgaria shares traded 5.69% higher at 26,000.0 levs, bourse data showed.
On Tuesday, CEZ Group press officer Alice Horakova told SeeNews the company is still negotiating with several potential buyers over the sale of some of the power utility’s assets in Bulgaria.
Her comment came after Czech news daily Hospodarske Noviny reported earlier on Tuesday that CEZ is close to completing the sale of assets in Bulgaria to India’s Future Energy.
According to the Czech news daily, CEZ intends to sell its power distribution unit in Bulgaria – CEZ Distribution, together with solar power plant Oreshets and biomass-fired power plant Bara. Hospodarske Noviny attributed its information to two separate sources close to the process.
Although the two sources have refused to comment on the price of the potential deal, it is definitely over 8 billion Czech crowns ($361.8 million/312.7 million euro), the Czech daily said.
Last month, CEZ Distribution Bulgaria said its non-consolidated net profit rose to 27.1 million levs in the first nine months of 2017, from 15.9 million levs in the like period of 2016.
Also last month, CEZ Electro said its net profit rose to 38.8 million levs in the January-September period of 2017, compared to 17.1 million levs in the comparable period of last year.
Last week, the CEZ Group said it agreed to sell its Varna thermal power plant (TPP), part of its assets in Bulgaria, to local company SIGDA. The final purchase price will be determined as of closing of the transaction based on the level of working capital, CEZ said at the time.
In August, CEZ said it had received binding bids for its assets in Bulgaria from several unnamed candidates.
In January, the Czech 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.
The assets of the CEZ Group in Bulgaria comprise CEZ Distribution Bulgaria, 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.
(1 euro = 1.95583 levs)
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