Bulgaria's Minority Stake in E.ON Utility May Shrink - Minister

Business » ENERGY | March 2, 2011, Wednesday // 14:56

Bulgaria's stake in the subsidiary of German utility group E.ON may shrink if the state declines to participate in the company capital hike, the economy minister has said.

Minister Traicho Traikov declined to cite any figures, but pointed out that E.ON Bulgaria capital boost has been triggered by expected negative results for 2010.

E.ON Bulgaria Networks has an equity capital of BGN 1.318 M.

At the end of last year Bulgaria's government announced it will list in two or three months its 33% minority stake in E.ON, one of the three power distributors in the country, to enliven the local stock exchange and boost revenues.

Bulgaria, struggling to cover its widest budget deficit in a decade, plans to sell minority stakes in other energy utilities as well.

In 2004, the Balkan country sold 67% in its three power distributors to Germany's E.ON, Austria's EVN and Czech CEZ. E.ON serves households in North-Eastern Bulgaria

Heavily criticized for its failure to rake in revenues into the budget by privatization, Bulgaria's government is expected this year to finally go ahead with the planned sale of minority stakes in E.ON-operated electricity distributor.

In 2011 Bulgaria's government should finally make its mind about how to restructure the energy holding, which groups the country's top energy assets, analysts have said.

Reports say the holding will come to include only the thermal and nuclear power plants, together with the National Electricity Company NEK, after which a minority stake will be listed on the stock exchange.

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Tags: E.ON, stock exchange, EVN, EON. CEZ, consolidation company, Simeon Djankov, Traicho Traikov, Bulgaria

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