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Enel confirms non-binding bids from ČEZ and Slovnaft-MVM to buy SE

Italian energy trust Enel on November 20 confirmed that it has received several non-binding bids on purchasing its 66-percent stake in Slovak electricity utility Slovenské Elektrárne (SE). Enel did not specify the number of bidders, but confirmed that Czech company ČEZ and a consortium of Slovnaft and MVM are among them. 

“We can state neither the names of further potential candidates, nor the number of received bids,” reads the Enel statement, as quoted by the TASR newswire. “As for the deadline for presenting binding bids, this may be around the end of this year or the beginning of the next year.”

Slovak oil refinery Slovnaft, an MOL Group (Hungary) member, and Hungarian energy company MVM Group announced their interest in SE earlier on that day.
“The bid corresponds to Slovnaft’s long-term strategy of maintaining and strengthening its strategic position on the regional energy market by diversifying its portfolio,” said Slovnaft spokesman Anton Molnar.

ČEZ, whose majority owner is the Czech state, presented its bid on November 19, claiming that a merger of ČEZ’s and SE’s capacities would introduce synergy in operation and development of nuclear and hydroelectric power plants in the Czech Republic and Slovakia. Both bidders have announced that they need to carry out an analysis of the situation at SE first, however. The remaining 34 percent of SE shares are owned by the Slovak state.

The companies “with Hungarian roots”, Slovnaft and MVM, want to first calculate whether it can be profitable to buy the company which has to complete two blocks of the nuclear power plant in Mochovce – that will require investments of billions of euros, while the prices of electricity on the market are low. ČEZ company had earlier shown interest, but also expressed the view that the unfinished power plant decreases the value of the company to negative numbers, the Sme daily wrote. Head of Slovnaft, Oszkár Világi, told Sme that the idea to connect the power company to the Hungarian-Slovak group was born in Slovakia. He also denied any Russian interests behind the potential purchase.

(Source: TASR, Sme)
Compiled by Zuzana Vilikovská from press reports
The Slovak Spectator cannot vouch for the accuracy of the information presented in its Flash News postings.

Topic: Energy


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