CEZ Razpredelenie Bulgaria AD

active

The government of Bulgaria, through its Privatization Agency, sold a 67% stake in Energy Distribution Group Western to Czech CEZ Group. The Western Group consisted of three local distribution companies: EDC Stolichno (Sofia), EDC Sofia Oblast and EDC Pleven. In 2003 the Western Group served 1.7 million customers, selling a total of 8,000 gigawatt hours of electricity. The divestiture was part of an effort to privatize the country’s entire distribution network. In 2003 the government reorganized Bulgaria’s seven local distribution companies into three geographical groups: Southeast, Northeast, and West. Each of the groups was to be privatized separately, with the provision that no single company could win a bid for more than one group. The divestiture contract was signed January, 2005. CEZ won a competitive tender that attracted three other bidders: Czech CEZ Group, Italy’s Enel Power and Greece’s Public Power Corporation. CEZ offered the highest bid for the Northeast Distribution Group, at $363.5 million (281.5 million Euros). At the end of 2007, EDC Sofia and Oblast and EDC Pleven were deregisted and merged EDC Stolichno (Sofia), which was then renamed CEZ Razpredelenie Bulgaria AD. 2011 capex from 2011 AR (pg 117) http://www.cez.cz/edee/content/file/investors/2011-annual-report/VZ2011aj.pdf