Electrica, Hidroelectrica and SAPE Interested in Acquiring CEZ Romania

Electrica informs shareholders and investors that it is currently exploring the possibility to participate, within a potential consortium formed together with Societatea de Administrare a Participatiilor in Energie S.A. (SAPE S.A.) and Societatea de Producere a Energiei Electrice in Hidrocentrale Hidroelectrica S.A., in the competitive procedure organized by CEZ a.s. for the sale of its subsidiaries in Romania.

Electrica also announces that it will promptly inform shareholders and investors on any aspects regarding the potential participation in the project, which will have to be reported in accordance with the applicable legal provisions. It should be noted that the sale of any stake in energy companies was suspended by the Government during the state of emergency.

CEZ plans to complete the sale of assets in Romania this year, even if the state of emergency has caused some delays.

“CEZ Group continues the strategy of selling certain operations for exiting most foreign markets. It is intended to complete the sale of assets in Romania by the end of this year, even if the state of emergency has caused some delays,” Martin Novak, CFO of the Czech utility group CEZ, has stated recently.

Hidroelectrica has already presented its interest and is ready to submit the final bid, alone or in consortium, for CEZ assets in Romania. Shareholders’ approval is requested, in the EGMS scheduled for June 25, for submitting a binding bid of Hidroelectrica, alone for the entire perimeter of the transaction or in consortium, within the deadline set by CEZ a.s., within the process of selling the CEZ Romania Group. At the same time, shareholders are expected to approve the partner with which Hidroelectrica will form a consortium and submit a joint binding bid.

Initially, Electrica had shown its interest in CEZ assets in consortium with SAPE.

Other interested investors are: investment funds Macquarie, from Australia, DWS – the investment fund of Deutsche Bank, OMV Petrom Group and the Hungarian state-owned operator MVM. CEZ Group in Romania is represented by its ten companies: Distributie Oltenia, CEZ Romania, CEZ Vanzare, CEZ Trade, CEZ ESCO Romania, Tomis Team, MW Invest, Ovidiu Development and TMK Hydroenergy Power.

CEZ Group has been present on the Romanian market since 2005, after it acquired the power distribution company – Electrica Oltenia SA.

Following the activities separation process (unbundling), successfully finalized in 2017, Distributie Oltenia (former CEZ Distributie) provides electricity to seven counties: Arges, Dolj, Gorj, Mehedinti, Olt, Teleorman and Valcea.

CEZ Vanzare is the main energy supplier in South-Western Romania, but also a natural gas supplier with a portfolio of domestic and industrial customers that exceeds 1.3 million customers.

The Group also holds the largest on-shore wind farm in Europe, Dobrogea region, in Fantanele, Cogealac and Gradina. The wind farm meant an investment of 1.1 billion euros and has 240 wind turbines with a total installed capacity of 600 MW. The entire capacity of CEZ Wind Farm was commissioned at the end of 2012.

Moreover, starting 2011, CEZ Group in Romania holds in its portfolio the hydro-power system located near Resita, in Caras-Severin county, consisting of four micro hydro power plants (Grebla, Crainicel I, Crainicel II, and Breazova), as well as the related hydro-energetic facilities from Trei Ape, Gozna, Valiug, and Secu. CEZ Group invested in the refurbishment of the hydro-power unit in Resita in order to increase efficiency, the production capacity is now set to be up to approximately 22 MW from 18 MW after the ending of the modernization process.

Starting 2018, CEZ ESCO Romania offers solutions to improve energy efficiency in the private sector. The company offers comprehensive services – from advisory to solutions design, from project management to complex energy sources (heat, cold and/or electricity) projects implementation.

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