E.ON Sheds Bulgaria Business to Czech Energo Pro

Business » ENERGY | December 3, 2011, Saturday // 16:05
Bulgaria: E.ON Sheds Bulgaria Business to Czech Energo Pro

German electric energy company E.ON has agreed to sell its Bulgarian unit E.ON Bulgaria to private Czech company Energo Pro.

E.ON Bulgaria operates as an electric power utility servicing the central northern and north-eastern parts of Bulgaria.

According to an E.ON press release, quoted by Reuters and Focus Information Agency, the Bulgarian E.ON business has been sold for EUR 133 M.

E.ON Bulgaria operates an electric power network spanning 42,000 km and delivering 5.3 B kWh of electricity during 2010.

E.ON plans to shed assets worth EUR 15 B by the end of 2013, whereas up to this point it has sold units for EUR 9 B, according to the statement.

Czech company Energo Pro specializes in hydro power production and electricity from other renewable energy sources.

It has a branch in Bulgaria, Energo Pro Bulgaria, which operates 8 hydro power plants and is the largest hydro power producer in the country.

End of November, news reports had it that Russian state-owned Holding MRSK OAO is also interested in acquiring E.ON Bulgaria.

The Bulgarian press has commented that the E.ON withdrawal is motivated both by a new global strategy of the company to move away from Europe on to Russia and Latin America, and by what the company sees as excessive interference on the part of the Bulgarian government.

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Tags: hydro-power plant, hydro power, E.ON, network, power, utility, MRSK, German, Russian, Czech, Energo PRO, renewable energy
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