CEZ to sell Bulgarian solar, energy assets to Inercom

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Czech power utility, CEZ is planning to sell its solar and energy assets in Bulgaria to Inercom Bulgaria.

The company said in a press release that the offer of the Bulgarian buyer is “significantly above the fair market value of the assets sold, as determined in an independent appraisal, and brings a positive return on the investments in the Bulgarian assets.”

It did not provide additional financial details. According to Reuters, however, which cites a source familiar with the matter, the value of the transaction is estimated at around €300 million (around US$370 million).

As for the solar part of the deal, CEZ said the operation will include the sale of the Oreshetz solar power plant located in western Bulgaria. The project represented CEZ’s first renewable energy investment in Bulgaria.

“The project was realized as part of CEZ’s commitment, in the framework of the privatization of Varna power station, to invest €40 million in clean energy projects in Bulgaria,” the company states on its website.

The transaction will be made through the sale of the following companies: CEZ Bulgaria; CEZ Elektro Bulgaria; CEZ Razpredelenie; CEZ Trade Bulgaria; CEZ ICT Bulgaria; Free Energy Project Oreshetz; and Bara Group.

According to the Czech utility, its unit CEZ Razpredelenie currently provides around three million Bulgarian customers with power, while CEZ Elektro Bulgaria and CEZ Trade Bulgaria sold 9.7 TWh of electricity to end customers in 2016.

According to Reuters, Inercom has activities in the construction and solar energy sectors.