CEZ is Already Negotiating with Indian Candidate for Assets in Bulgaria, Czech Newspaper Writes

Business | February 12, 2019, Tuesday // 13:24| Views: | Comments: 0
Bulgaria: CEZ is Already Negotiating with Indian Candidate for Assets in Bulgaria, Czech Newspaper Writes

The Bulgarian company Inercom is no longer considered by CEZ as an exclusive candidate in the deal for the Bulgarian assets of the company and is also negotiating with the Indian "India Power Corp.". This is stated on the site of the Czech newspaper Lidove News, quoting sources from CEZ, reports Dnevnik.

Due to the situation in Bulgaria, the sale of the business in the country, hampered by regulatory problems and the failure of the Bulgarian candidate to raise the necessary funds, CEZ returned to work with the second candidate, initially offering EUR 355 million for five years. Inercom's bid was 342.4 million, but immediately.

However, sources from CEZ's headquarters say the Indian Power Corporation is trying to take advantage of the unfavorable developments surrounding the Inercom deal and change its bid.

According to CEZ spokesperson Alice Horakova, the company has not yet given up on the deal with Inercom, as there is still no updated binding offer to consider. Horakova adds that the choice of the Bulgarian company was related to the deferred payment proposed by the Indian company.

Sources of Lidove News in Sofia claim that the Indian candidate will not repeat its current offer as it understands that the situation of the Czech company on the Balkan market is not good. Experts on the Bulgarian market have explained to the newspaper that the offered price may decrease by hundreds of millions of crowns (millions of euros).

Besides analyzing the stock market results, this is confirmed by the financial injections imposed last year - loans amounting to EUR 30 million granted by CEZ in Prague to the subsidiaries in Bulgaria. According to spokesperson Horakova, the company expects, when successful, to sell the loans granted for the necessary investments of the company to be repaid.

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