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CEZ in talks with best bidder for assets in Romania
Czech energy group CEZ said on Tuesday that it is holding negotiations with the potential buyer who has submitted the best bid in the process for the sale of the group's assets in Romania.
"On June 25, 2020, CEZ Group received binding offers for assets in Romania. Mainly the distribution and sales companies and the Fantanele and Cogealac wind power plants are subjects of the sale," CEZ Group said in a presentation of its first-half financial results.
"The bids have been evaluated and negotiations are currently underway with the submitter of the most advantageous bid," CEZ added. It did not provide further details.
According to media, Czech utility group CEZ has entered into exclusive talks with Macquarie Infrastructure and Real Assets (MIRA), one of the largest global managers of infrastructure, real estate, agriculture and energy assets, for the sale of its operations in Romania.
India Power Corporation, Hungarian power group MVM (Magyar Villamos M?vek), German utilities group E.ON, German financial services group Allianz, and the Romanian state-controlled consortium Hidroelectrica - Electrica - SAPE were reportedly the other bidders for CEZ's Romanian assets.
CEZ has organized a bidding process. However, CEZ is now reportedly discussing exclusively with Macquarie for the sale of operations in Romania, in a transaction of about EUR 1 bln, one of the largest in the energy sector in recent years, according to Ziarul Financiar daily.
Macquarie Infrastructure and Real Assets (MIRA) manages USD 129 bln in assets, mostly consisting of infrastructure projects. Thus, 75% of MIRA's assets are invested in infrastructure, followed by real estate (15%), renewables (9%), and agriculture (1%). Geographically, 49% of its assets are in Europe, the Middle East, and Asia (EMEA). MIRA operates in 33 countries, according to its website.
CEZ said in May that the process for the sale of its Romanian assets continued, with the timeframe to depend on the coronavirus situation in the country.
In April, Romania suspended the sale and purchase of majority stakes in local companies until the end of the state of emergency declared in order to limit the coronavirus spread. The suspension came halfway through the sale procedure, which CEZ expected to complete in the second half of 2020.
The sale process was officially launched on September 9 and includes but is not limited to the distribution and sales companies and the Fantanele and Cogealac wind parks owned by CEZ in Romania.
In June, Romanian hydro power producer Hidroelectrica said that it has received the approval of its majority shareholder - the ministry of economy and energy, to submit a binding bid for CEZ's local assets.
Also in June, state-owned power supplier and distributor Electrica [BSE:EL] said it is exploring the possibility to bid for the local assets of CEZ in a potential tie-up with state-owned Energy Shareholdings Administration Association (SAPE) and Hidroelectrica. SAPE was created in 2014 and has as its main activity the management of minority interests that the Romanian state owns in energy companies.
CEZ is one of the leading integrated energy companies in Romania. Its assets include one of the largest distribution companies in the country with a customer portfolio of over 1.4 million.
In Romania, CEZ also owns Europe's largest on-shore wind park Fantanele-Cogealac with installed capacity of 600 MW, as well as the hydro electric system Resita consisting of four water reservoirs and four small hydro electric power stations with 22 MW capacity in total. CEZ Romania also sells electricity and gas to end customers.