CEZ launched market sounding to divest its assets in RomaniaChristian Fernsby ▼ | September 10, 2019
CEZ officially launched the divestment process in Romania.
Europe CEZ is considering selling seven companies
Topics: CEZ Romania
CEZ is considering selling seven companies in Romania, keeping only those engaged in energy services (ESCO) activities and part of trading.
These steps are in line with CEZ Group's new strategy.
CEZ has included seven Romanian companies in the market sounding (Energy Distribution Oltenia, Ovidiu Development, Tomis Team, MW Team Invest, CEZ Vanzare, TMK Hydroenergy Power and CEZ Romania).
Investors can express their interest both for the entire bulk, but also for individual companies.
The testing of market interest is carried out by CEZ's exclusive investment advisor, Société Générale.
Investors will find instructions for expressing interest on the CEZ website.
CEZ is one of the leading integrated energy companies in Romania.
Its assets include one of the largest distribution companies in the country (customer portfolio 1.4 million, 6 826 GWh of electricity delivered in 2018), Europe's largest on-shore wind park Fantanele-Cogealac (600 MW installed capacity, 2018 production 1 105 GWh), a modernized hydroelectric system Reşita consisting of four dam reservoirs and four small hydroelectric power stations (22 MW in total, 83 GWh produced in 2018) and electricity and gas sales to end customers (3,425 GWh sold in 2018).
The divestment of Romanian companies is in line with CEZ Group's new strategy, approved this June.
The strategy envisages the gradual sale of assets in Bulgaria, Romania, Turkey and partly also in Poland, with the exception of companies focused on the field of modern energy services (ESCO), which CEZ wants to develop further both at home and abroad.
CEZ Group entered the Romanian energy market in 2005 with the purchase of one of the distribution companies.
Romanian assets have generated positive EBITDA from the start and regularly contribute to CEZ Group's dividend. ■