CEZ eyes central Europe assets

• 8 years ago (2015-05-13)
• Junior Isles

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Czech power company CEZ says it is keeping an eye on potential investment in assets in central Europe that its Swedish and Italian rivals may sell, although it admits there are few immediate and attractive takeover targets.

Unlike many of its European rivals, CEZ is practically debt free, allowing it to borrow should attractive investment opportunities arise in the future, said CEZ CEO Daniel Benes.

CEZ is evaluating potential purchases of Vattenfall Group’s German and Enel’s Slovak assets, valued by analysts at up to €5 billion ($5.6 billion).

Although CEZ made no firm offer for Enel’s 66 per cent stake in Slovenske Elektrarne, a power utility in neighbouring Slovakia, by last week’s bidding deadline, it is watching the sales process.

Enel and the Slovak government, which owns the remaining 34 per cent stake in Slovenske Elektrarne, are locked in court battles over the delayed and over-budget expansion of the Slovak nuclear power plants that the Italian company had promised to complete. This struggle is complicating Enel’s exit from Slovakia.

The Slovak government wants Enel to complete the expansion of the country’s sole Mochovce nuclear power plant by the end-2017 deadline.

“We’ll see how the situation regarding Slovenske Elektrarne pans out," Mr. Benes said.

Meanwhile, Vattenfall has been looking to sell its German coal mining and power-generation assets. However, it is yet to launch the sales process, which may include some of its hydropower units in Germany.