Northeast Electricity Distribution Group

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The government of Bulgaria, through its Privatization Agency, sold a 67% stake in Energy Distribution Group Northeast to Germany’s E.ON AG. The Northeast Group consisted of two local distribution companies: Elektrorazpredelenie Varna AD and Elektrorazpredelenie Gorna Oryakhovitsa AD. In 2003 the Northeast Group served 1.13 million customers, selling a total of 4,935 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 on October 28, 2004. E.ON won a competitive tender that attracted three other bidders: Czech CEZ Group, Italy’s Enel Power and Greece’s Public Power Corporation. E.On offered the highest bid for the Northeast Distribution Group, at $181 million (140 million Euros). The deal was completed in January 2005. In January 2006 E.On transferred 8% of its shares in the electricity distribution companies to the European Bank for Reconstruction and Development (EBRD). In December 2011, E.ON sold its stakes to Energo-Pro for 133 million euro (US$172 million. The sale was later approved the Bulgaria's Competition watchdog, in January. 2010 capex http://www.eon-bulgaria.com/_Material/corporate_profile/Corporate_profile_2010_Issue_2011_ENG.pdf