Romania's Electrica considering joint bid for CEZ assets with SAPE, Hidroelectrica

Romanian power supplier and distributor Electrica [BSE:EL] said on Wednesday it is exploring the possibility to bid for the local assets of Czech energy group CEZ in a potential tie-up with the Energy Shareholdings Administration Association (SAPE) and state-owned hydro power producer Hidroelectrica.

Electrica will promptly inform its shareholders and investors about any aspects regarding the potential participation in the project, it said in a statement filed with the Bucharest Stock Exchange, BVB.

This is the first official confirmation of interest from Electrica regarding CEZ assets. Local media have reported the possibility of a bid since the end of last year.

in December, Hidroelectrica announced that it has started procedures to take over assets in Romania put up for sale by CEZ.

Local media reported at the end of last year that SAPE has submitted individual non-binding offers for part of the assets in Romania that CEZ is selling. SAPE, created in 2014, has as its main activity the management of state-owned minority interests in energy companies.

CEZ said last month that the sale process for its Romanian assets continues, with the timeframe to depend on the coronavirus situation in the country.

"During the state of emergency, the Romanian government suspended the transfer of majority stakes in the companies of the national energy system. The sales process and negotiations with individual bidders continue," CEZ said at the time. "The final timetable including the deadline for binding bids will be set depending on the development of situation in the country."

The sale process was officially launched on September 9. The sale includes but is not limited to the distribution and sales companies and the Fantanele and Cogealac wind parks.

Electrica's shares traded 0.90% higher at 11.2 lei ($2.6 /2.3 euro) as at 1053 CET on Wednesday on the BVB.

(1 euro=4.8419 lei)

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