Mochovce Nuclear Power Plant. (source: TASR)
Czech billionaire Daniel Křetínský and Slovak financier Patrik Tkáč are nearing the completion of a major transaction in Slovakia that began in 2015, reports the Denník N daily. Their company, Energetický a Průmyslový Holding (EPH), initially acquired 50 percent of Italian company Enel’s stake in Slovenské Elektrárne (SE), Slovakia’s largest electricity producer.
Over the years, delays and financial struggles have postponed the finalisation of the deal. This week, EPH announced that the transaction’s final agreement is now in place.
SE had been struggling financially, especially with the delayed completion of the third and fourth nuclear reactors at Mochovce, a project plagued by spiralling costs. Initially budgeted at €2.8 billion, the total cost for the Mochovce project has exceeded €6 billion, with the fourth reactor still unfinished.
The nuclear power station in Mochovce. (source: SME)
These financial troubles led Enel and EPH to step in, providing critical loans to keep the company afloat. Enel’s support totals over €1.2 billion, while EPH has also contributed financially. To complete the deal, EPH must now guarantee loans totalling €1.1 billion for Slovenské Elektrárne’s debt.
Highly profitable, but still in debt
More recently, SE has become highly profitable, achieving a record €558 million in profits in 2022. This success is attributed to the increased production from nuclear power and strategic energy trading, where electricity is sold years in advance. Previously, low electricity prices and high investment costs had burdened the company. Despite its profitability, SE remains heavily indebted, with liabilities exceeding €4 billion.
As part of the ongoing transaction, EPH now stands to acquire full control over Enel’s remaining stake, making it the majority shareholder. The Slovak state retains a pre-emptive right to purchase 17 percent of SE shares but cannot exercise this option until the completion and approval of both Mochovce reactors. The third reactor is operational; the fourth is expected to start next year.
State ownership vs state oversight
Politicians and analysts in Slovakia have mixed opinions about EPH’s growing influence. Opposition parties argue for greater state ownership to secure energy independence, while others, including Progressive Slovakia (PS), emphasise the importance of maintaining regulatory oversight rather than outright control. Patrik Tkáč, who rejoined EPH in 2020 and now holds 44 percent of the company, and Daniel Křetínský, with a 56 percent stake, have steadily expanded EPH’s presence across Europe.
With over 70 companies under its umbrella, EPH’s operations span several countries, making it a significant player in European energy markets. The completion of this transaction could finally provide dividends to shareholders, including the Slovak state, marking a turnaround for SE after years of financial uncertainty.
