Romania and CEZ Group
Romania Energy sector
In the fourth quarter of 2005, the privatization of the distribution company Electrica Muntenia Sud S.A. supplying electricity to the capital of Bucharest and the adjacent districts started. CEZ, a. s., became a qualified party interested in a 67.5 % share, the tender was finally won by other bidder though. The anticipated privatization of three remaining distribution companies, Electrica Muntenia Nord S.A., Electrica Transylvania Sud S.A. and Electrica Transylvania Nord S.A., with a total of 3.3 million customers did not start in 2006. The same is true for the privatization of the fuel-energy complexes Turceni, Rovinari and Craiova with the total installed capacity of 4,240 MW. The Romanian legislation postulates a separation of regulated activity from distribution from June 30, 2007.
CEZ Group Members in Romaina
The distribution company Electrica Oltenia S.A. operated in Romania in 2006. On March 15, 2007, a selling company, CEZ Vanzare S.A., was detached (by the method similar to separation of companies defined by the Czech Commercial Code). The original company Electrica Oltenia S.A. is now engaged only in electrical energy distribution. Its name has been changed to CEZ Distributie S.A.and its authorized capital and the nominal amount of shares have been reduced.
Another company which operates in the country is CEZ Romania S.R.L., which has the primary goal to provide maintenance and management services for CEZ Group members and which supports the acquisitions team in other prospective acquisitions. Until the independent company CEZ Trade was established in March 2007, Romania S.R.L. had also been engaged in electrical energy trading under the gained lincence. The year 2006 was the first year of its full operation. A partial centralization of shared services, which will be provided by CEZ Servicii S.A. and other companies within CEZ Group in Romania, namely within the scope negotiated by the minority shareholder of Electrica Oltenia S.A., Electrica S.A, is being prepared.
Further information is available at www.cez.ro.
CEZ Group´s Polish acquisitions
In Poland, CEZ Group operates through its trade agency CEZ Polsko based in Warsaw. The mission of the agency is to support acquisition processes and power trade in Poland.
CEZ Group confirmed its serious interest in the Polish power sector by its successful participation in the tender for a purchase of majority shares in the upper Selsian power companies Elektrociepłownia Chorzów “Elcho“ Sp. z o. o. and Elektrownia Skawina S. A. CEZ Group ownes about a 75 % share in Skawina and Elcho through CEZ Silesia B. V. and CEZ Poland Distribution B. V. This acquisition helped CEZ Power Group strengthen significantly its position in the area of its bituminous coal portfolio. In total, CEZ Group operates in Selsia 1,593 MW of installed electrical capacity. The generating capacity of the Skawina bituminous coal-fired plant, including a little hydro-power plant in its territory, is 492 MW. Elcho produces combined electricity and heat in two modern units with the total generating capacity of 238 MW.
Additional information is available on the following websites:
Further foreign capital participations of the ČEZ Group
The Slovak Republic
In Slovakia the 100 % subsidiary of ČEZ, a. s. named ČEZ Slovensko, s.r.o. with the registered office in Bratislava was established in June 2007. Its objective is active participation in electricity trading. This company replaced the organizational unit of ČEZ, a. s.
The official pages of ČEZ Slovensko are available at www.cez.sk.
The Republic of Hungary
The objective of the acquisition of the Hungarian company CZ-2005 Magyarország Kft., whose trade name was later changed by ČEZ to CEZ Hungary Ltd., is to create better conditions for electricity trading in Hungary and to arrange an access to the Hungarian transmission system. Since March 2006 CEZ Hungary Ltd. has a valid license for electricity trading and has been participating in electricity trading on the Hungarian market on an active basis.
The Kingdom of the Netherlands
ČEZ, a. s. has six full-owned companies registered in the Netherlands. Through CEZ Finance B.V. established in 1994, ČEZ,
a .s. issued its foreign bonds before accession of the Czech Republic to the European Union. In December 2007 Transenergo International N.V. and CEZ MH B.V were incorporated. The other three companies – CEZ Silesia B.V., CEZ Chorzow B.V. and CEZ Poland Distribution B.V. – were acquired by ČEZ, a. s. in relation with the acquisition of shares in the Polish power engineering companies Elektrocieplownia Chorzow “ELCHO“ Sp. z o.o. and Elektrownia Skawina S.A. ČEZ, a. s. has taken over the model of ownership of the Polish power plants through these companies from the seller.
CEZ Group in Bulgaria
CEZ Group is one of the leading utility companies in Central and South East Europe and the second largest exporter of electricity in Europe. The group has power assets in the Czech Republic, Bulgaria, Romania and Poland.
CEZ Group has been on the Bulgarian energy market since the end of 2004, when the company acquired a majority stake (67%) of the three electricity distribution companies in Western Bulgaria – Electricity Distribution Stolichno AD, Electricity Distribution Sofia Oblast AD and Electricity Distribution – Pleven AD, which later merged in one company – CEZ Distribution Bulgaria AD. In October 2006 the company strengthened its position in electricity generation as well, buying up 100% of the capital of TPP Varna EAD.
The structure of CEZ Group in Bulgaria includes the electricity distribution company CEZ Distribution Bulgaria AD, the public supplier of electricity and a licenced trader CEZ Electro Bulgaria AD, the licenced electricity trader CEZ Trade Bulgaria EAD and ТPP Varna EAD. The local activity of all companies from the group is managed and coordinated by CEZ Bulgaria EAD.