According to Mergermarket agency, CEZ was interested buying stakes in four Ukrainian electricity generator companies, Zhitomiroblenergo, Krivogradoblenorgo, Sevastapolenergo and Khersonenergo controlled by VS Energy. The value is estimated at USD490-540m. However, VSE says that it is considering a merger with AES Ukrainian operations instead and is not interested in CEZ’s offer. While we regard Ukraine as an attractive high growth market, CEZ’s failure to acquire these assets shall not be taken negatively given other opportunities in the region, including Russia. Alternatively, CEZ could raise its dividend payments.
CEZ confirmed its interest in Polish power plant Kozienice, which is one of the largest power plants in Poland with installed capacity of 2,880 MW (c24% of CEZ’s installed capacity) by submitting a revised bid. CEZ is among the six bidders, who have been short-listed. No further details have been released.