CEZ enters Romania through Electrica Oltenia

Czech power company CEZ is planning to acquire electrical power production facilities in Romania in the sector of thermal and hydropower stations, said Martin Roman, general executive manager of CEZ. On Tuesday the Czech company signed the privatisation contract for Electrica”s Oltenia branch, in a deal worth 151 million euros. CEZ will pay 47.4 million euros to buy a 24.62% stake in Electrica Oltenia and will subsequently participate in a capital increase operation with a further 103.6 million euros to obtain a majority stake. The regional electricity distribution company for Oltenia has debts of 2,550 billion ROL (71 million euros) and receivables of 2,528 billion ROL (70.2 million euros). Electrica Oltenia is the largest of the eight Electrica branches, with over 1.37 million consumers in the counties of Dolj, Gorj, Olt, Mehedinti, Teleorman, Valcea and Arges. The deal will be finalised by June 30, by which date, according to Electrica estimates, CEZ representatives will have gained access and be taking part in all the major strategic decisions of Electrica Oltenia. ZF