UPDATE 1 - CEZ declines comment on reported plans to sell Romanian business


BUCHAREST (Romania), May 22 (SeeNews) - Czech energy group CEZ on Wednesday declined to comment on media reports that it plans to sell its business in Romania.

"We are aware of these statements circulating in Romania. The mother company in the Czech Republic currently prepares the regular update of its strategy. The strategy will be discussed at the general assembly with the shareholders next month. At this moment, we do not comment on it," a CEZ press officer told SeeNews in an e-mailed statement on Wednesday.

The regulatory authorities in Romania have already been informed about the intentions of CEZ to sell its operations in Romania, daily Ziarul Financiar reported on Tuesday quoting unnamed market sources.

According to the daily, CEZ shareholders are dissatisfied with the group's strategy in Eastern Europe and claim that the management cannot ensure long-term profitability in some economies such as Romania, Albania, Bulgaria and Turkey.

A CEZ official is set to arrive in Bucharest later this week for discussions with Romanian regulators, Ziarul Financiar added.

CEZ Group has been present in Romania since 2005, when it took over national distribution company Electrica Oltenia. It currently serves over 3.5 million customers locally through nine companies: Distributie Oltenia, CEZ Romania, CEZ Vanzare, CEZ Trade, CEZ ESCO Romania, Tomis Team, MW Invest, Ovidiu Development, and TMK Hydroenergy Power.

In April, financial and insurance group Eurohold Bulgaria [BUL:4EH] launched exclusive talks for the acquisition of CEZ' assets in Bulgaria.


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