CEZ Group has reached an agreement to sell its Romanian assets to funds managed by Macquarie Infrastructure and Real Assets (“MIRA”). The assets comprise of seven companies, including electricity distribution networks, energy supply and the Fantanele Cogealac wind park, among others. Closing of the transaction is subject to receiving approval from European antitrust authorities and the Romanian Supreme Council of National Defence.
The integrated energy infrastructure portfolio is comprised of an 86,665 kilometre regulated electricity distribution network and an electricity and gas supply business with 1.4 million residential and industrial connections in the South West of Romania. The acquired assets also include a renewable energy platform, with 622 MW of primarily onshore wind farms and plans to develop its portfolio further.
The sale of CEZ assets in Romania to funds managed by Macquarie Infrastructure and Real Assets was approved by CEZ Group’s bodies just 13 months after the transaction process’ kick-off. CEZ Group and Macquarie Infrastructure and Real Assets have reached an agreement on the sale of all three business segments that were included in the transaction: electricity distribution, energy supply and an operational renewable energy portfolio. CEZ Group remains active in Romania, focusing on its trading (CEZ Trade Romania) and energy services business (High-Tech Clima). Société Générale (together with its group companies Komerční banka and BRD – Groupe Société Générale) acted as Exclusive Financial Advisor to the CEZ Group on the sale.
CEZ experienced strong interest for its assets. Despite the difficult environment caused by COVID-19, CEZ and Société Générale maintained a high level of competition in the transaction. Macquarie Infrastructure and Real Assets submitted the most attractive offer, which was confirmed by independent valuation reports. The transaction needs to be approved by the European Directorate-General for Competition and the Romanian Supreme Council of National Defence (Consiliul Suprem de Apărare a Ţării, CSAT).
“Romania is one of Europe’s most dynamic economies, and its energy infrastructure is critical to supporting the country’s long-term growth and low-carbon transition. We are delighted to announce this investment and we look forward to supporting this critical infrastructure business as it invests to deliver more reliable, efficient, safe, and sustainable electricity to the communities it serves,” said Leigh Harrison, Head of Macquarie Infrastructure and Real Assets EMEA.
“CEZ in România has often pioneered bold and innovative initiatives that have stimulated the consolidation and development of the Romanian energy sector. Our team of highly skilled specialists has been able to do this by endorsing digital transformation and pursuing a client-centered business strategy. With the acquisition by Macquarie Infrastructure and Real Assets, we are looking forward to building on these results with an experienced long-term investor that will support our business going forward,” said Ondrej Safar, CEO and President of the Management Board of CEZ Group in România.
As the world’s largest infrastructure, MIRA is trusted to manage the operation and development of electricity distribution networks in Australia, Austria, Finland, Spain, and the United States. Macquarie Infrastructure and Real Assets is also a major investor in clean energy, managing investments in 12.4 GW of green generation capacity globally across onshore and offshore wind, solar PV, hydropower, geothermal, and energy from waste.
About Macquarie Infrastructure and Real Assets
Macquarie Infrastructure and Real Assets (MIRA) is one of the world’s leading alternative asset managers. For more than twenty-five years, MIRA has partnered with investors, governments and communities to manage, develop and enhance assets relied on by more than 100 million people each day. As at 31 March 2020, MIRA managed approximately €120 billion in assets that are essential to the sustainable development of economies and communities, including: 151 portfolio businesses, ~500 real estate properties and 4.8 million hectares of farmland.
MIRA is a part of Macquarie Asset Management, the asset management arm of Macquarie Group, a diversified financial group providing clients with asset management and finance, banking, advisory and risk and capital solutions across debt, equity and commodities. Founded in 1969, Macquarie employs over 15,800 people and is listed on the Australian Securities Exchange (ASX:MQG).