Bulgaria Seeks to Raise BGN 105 M from CEZ Units Bourse Sale
Bulgaria will seek to rake in at least BGN 104.3 M from the sale of the government's 33% minority stake in the local power distribution units controlled by Czech CEZ, the bourse said.
The sale starts on October 29 at the Bulgarian Stock Exchange.
Bulgaria's Privatization and Post-Privatization Control Agency will offer 63 624 shares in power distributing unit CEZ Distribution Bulgaria and 1650 shares in grid operating unit CEZ Electro Bulgaria.
The minimum price per share has been set at BGN 1,415 and BGN 8,660 respectively.
Investment intermediary Central Cooperative Bank AD will manage the sale.
Bulgaria has already sold its minority stakes in power distributors controlled by Czech Energo-Pro and Austrian EVN for BGN 67.6 M and BGN 93 M respectively.
Both companies acquired the bulk of the capital of its two units in Bulgaria right after the trade with their shares started on the local stock exchange, boosting their 67% stakes held before the launch of the sale.
The sale of the two power distribution companies controlled by Czech electricity producer CEZ will bring to an end Bulgaria's privatization of its 33% minority stakes in all three power distributors.
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 served households in North-Eastern Bulgaria, including the Black Sea city of Varna. Czech power utility CEZ supplies power to over 2 million households and companies in western Bulgaria, while EVN serves the south-eastern parts of the country.
At the beginning of December German electric energy company E.ON struck a deal to sell its Bulgarian unit E.ON Bulgaria to private Czech company Energo-Pro.
Experts have repeatedly called on the government to launch high-quality initial public offerings to bring back to life the capital market, dented by low liquidity and lack of quality stock, as well as to boost revenues.
That's why the sale of the minority stakes in the electricity distributors on the stock exchange was a must-do task for 2012.
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