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Slovnaft gives up SE

The Slovak-Hungarian consortium of the Slovnaft refinery and the MVM company will not be further interested in purchasing a stake in Slovakia’s largest power producer, Slovenské Elektrárne (SE) held by the Italian energy group Enel.

Uncompleted Mochovce nuclear power plant(Source: Sme)

It has given up its interest as, based on information and findings collected so-far, it sees significant legal as well as economic risks in the transaction, while at question is especially prolongation of the completion of the third and fourth blocks of the nuclear power station in Mochovce as well as the continual increase in the project’s price, the TASR newswire wrote.

“We do not communicate with Enel anymore,” Oszkár Világy, CEO Slovnaft told the vEnergetike.sk website confirming a statement of Sándor Fasimon, executive director of MOL, the parent company of Slovnaft, for the origo.hu website.  

Fasimon said that recently they have informed Enel that the consortium would not continue with the process of the purchase of the 66-percent stake Enel holds in SE while both companies, Slovnaft and MVM, as regionally important strategic investors are open to exploring other business opportunities, the SITA newswire reported.  

During the time being Enel has been holding exclusive talks about the sale of the stake with the Czech-Slovak group Energetický a Průmyslový Holding (EPH) while negotiations have continued into their second month. Neither Enel nor EPH have refused to comment on the negotiations.

After the Slovnaft-MVM consortium gave up its interest, EPH might be the only one in the fight for the stake in Enel, while Enel has not commented on whether the China National Nuclear Corporation (CNNC) has sent its offer. Additionally the information spread by media about the interest of Finnish Fortum has never been confirmed. The stance of Slovakia’s cabinet, with the country holding the remaining 34 percent stake in SE is not known as analyses assessing possibilities for an increase of Slovakia’s stake in SE have not yet been completed.

Read also: Read also:State still wants influence in SE

Italy’s Enel announced the sale of its stake in SE and other assets in 2014 as part of efforts to cut its debt load. It acquired the 66 percent share, which included also rental of the Gabčíkovo hydropower plant for €840 million in 2006, while the privatisation had not yet been completed. Earlier in 2015, in response to demands of Slovakia, SE returned Gabčíkovo back to the state, a transaction resulting in both sides demanding hundreds of millions of euros in compensation from the other.

Topic: Energy


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