The representatives of the Czech energy group, CEZ, have said they will deliberate over the following days whether the Electrica''s crown "jewel" "is worth or not" 750 million euros.
Jan Veskrna, 41, CEZ Romania country manager, says the Czechs'' strategy for the acquisition of Electrica Muntenia Sud is a solid and accurate business plan, but not an excessive price.
"We will not give up on Electrica Muntenia Sud, we definitely want to buy this company, but we will not offer excessive sums during the tender. Our policy is to have as solid and accurate a business plan as possible," stated Veskrna. Whether the 750 million euros Electrica officials hope to raise from the privatisation of the most valuable electricity distribution company are a price worth paying or not, at least from the point of view of the Czech investor, is an issue that is going to be cleared out on the short term, in line with CEZ representatives'' statements.
The Czechs are on the shortlist of the tender for the sale of Muntenia Sud, alongside Gaz de France (France), Enel (Italy), RWE (Germany) and Iberdrola (Spain). The deadline to submit improved financial bids was postponed from April 12th to May 2nd due to the fact that the selected investors need the company''s balance sheet for 2005 drawn up, to comply with international standards.
Electrica Muntenia Sud last year derived net income worth 24.7 million euros amid turnover standing at 391.6 million euros, according to international financial reporting standards. In 2004, the company logged losses of 8.3 million euros.
The biggest project the Czechs are now facing is splitting the electricity distribution and supply activities, a process that has been imposed through a EU directive aimed at shunning the emergence of monopolies on the energy market.
"In late May, the results of the survey on this process will emerge. This is an extremely complicated task," specified CEZ country manager.
CEZ took over Electrica Oltenia, with 1.4 million customers, last autumn in a deal totalling over 167 million euros.
The head of CEZ Romania underscored the fact that though this process will have a positive impact over the future progression of the electricity distributor, part of the involved costs would pass on to final consumers.
roxana.petrescu@zf.ro
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