Czech energy company CEZ, one of the strongest regional players, will take over the controlling interests (51%) in Electrica Oltenia, the largest electrical power distributor in Romania, for approximately 150 million euros, sources close to the deal told Ziarul Financiar.
According to the quoted sources the Czechs will pay 43 to 47 million euros for the acquisition of 24.62% in Electrica Oltenia, with the rest of the money accounting for the contribution required for the increase of the company's share capital so that the Czechs could acquire the 51% majority.
The privatisation contract for the Oltenia electricity distributor is now at the beginning, with signing scheduled to take place in the next few weeks, the quoted sources say.
The money derived from the sale of the shares will be collected by Electrica SA, which owns the eight distribution and electricity supplying branches entirely.
The State's consultant in this deal is a consortium led by Bank of America Securities, with the team also comprising Nestor Nestor Diculescu Kingston Petersen and Allen & Overy law firms.
On the other hand, CEZ has retained Austrian CA IB consulting firm, Deloitte (as its auditor) and the local offices of the British law firm Linklaters.
Electrica Oltenia has 1.36 million customers and sells 6.8 TWh a year, while Electrica Moldova has 1.31 million clients and its sales reach 4.1 TWh.
Electrica Oltenia is the largest electrical power distributor in Romania, both in terms of share capital and in terms of share in the total Electrica business (some 19%), according to the latest available data.
Electrica posted approximately 1.95bn euro turnover last year and expects a constant performance of its business volume in the long run, given that the sale of the last distribution branches is due for completion over the next few years.
Italy's Enel Group this summer acquired 51% in Electrica Banat and Electrica Dobrogea for 112 million euros.
When Electrica Oltenia and Electrica Moldova were first put up for privatisation, CEZ and German utility giant E.ON competed for both electricity distributors with Union Fenosa (Spain), AES (US), and Public Power Corporation (Greece).
In the end, the only bidders left in the race were CEZ, in Electrica Oltenia's case and E.ON in Electrica Moldova's case, both of them being interested in consolidating their regional portfolio on the electrical power markets. adrian.mirsanu@zf.ro
