Romania's Hidroelectrica seeking shareholder nod to submit final bid for CEZ assets
Romania's Hidroelectrica said on Friday it is seeking the approval of its shareholders to submit a final bid to take over local assets of Czech energy group CEZ.
Hidroelectrica's shareholders will meet on April 14 in order to vote on the proposal, a document posted on the company's website on Wednesday showed.
The company will also ask its shareholder to approve the possibility of taking a loan in order to finance the acquisition.
In December, the company said it has started procedures to take over assets put up for sale by CEZ and by multinational energy group Enel in Romania.
In September, CEZ announced that it has launched a process for the sale of its assets in Romania. CEZ is considering selling seven companies in Romania, keeping only those engaged in energy services (ESCO) activities and part of trading.
CEZ has included the following companies in the market sounding: Energy Distribution Oltenia, Ovidiu Development, Tomis Team, MW Team Invest, CEZ Vanzare, TMK Hydroenergy Power and CEZ Romania.
CEZ is one of the leading integrated energy companies in Romania. Its assets include one of the largest distribution companies in the country with a customer portfolio of 1.4 million and 6,826 GWh of electricity delivered in 2018. In Romania, CEZ also owns Europe's largest on-shore wind park Fantanele-Cogealac with installed capacity of 600 MW and production of 1,105 GWh last year and a modernized hydro electric system Resita consisting of four water reservoirs and four small hydro electric power stations with 22 MW capacity in total, which produced 83 GWh in 2018. CEZ Romania also provides electricity and gas sales to end customers, selling over 3,425 GWh in 2018.
Hidroelectrica is 80.06% owned by the Romanian state, while investment fund Fondul Proprietatea owns 19.94%.
Earlier this month, Hidroelectrica launched a new tender for a 1.75 million euro ($1.95 million) contract for equity advisory services in view of an initial public offering, a notice in Romania's electronic system for public procurement, SEAP, shows.
In February, local media reported that the European Bank for Reconstruction and Development (EBRD) is interested in acquiring a 5% stake in Hidroelectrica.