CEZ - Internation Power stepped down from privatization of Slovenske Elektrarne

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Investiční bankovnictví KB

      International Power (IP) announced that it stepped down from privatization of Slovenske Elektrarne (SE) due to insufficient information. IP said that the lack of sufficient information dos not allow you to place appropriate bid. Another uncertainty relates to future regulation of the Slovak electricity market and nuclear liabilities.

       In our opinion, the news is mixed for CEZ. Departure of IP and subsequently reduced competition could lead to potentially lower acquisition price. On the contrary, the IP statement increases risk that CEZ would not be able to find out all potential “skeletons” in SE during due diligence, which could lead to potential overpayment in the privatization.

       CEZ, 34% owned by CEZ, announced that it reached net profit of CZK 1.62bn in 2003.

      Tyto zprávy pro vás vytváří Investiční bankovnictví KB.