EPH completes deal to buy 33% of Slovenske Elektrarne

By bne IntelliNews July 28, 2016

Energeticky a Prumyslovy Holding (EPH) has closed the first phase of buying into Slovenske elektrarne, the Czech-Slovak group announced on July 28.

The deal hands EPH a 33% stake in Slovakia's dominant power producer via subsidiary, EP Slovakia BV (EP Slovakia). The closely-held group received the green light from the EU on competition grounds on July 26.

The sale of the company by Italian utility Enel provoked fury from Bratislava, which holds 34% in SE and made it plain it would seek control. That put off several potential suitors, however EPH has a close working relationship with coalition leader Smer, sharing ownership of Slovakia's gas network via Eustream.

EPH agreed an initial price of €375mn for a 50% stake in Slovak Power Holding BV (SPH), which holds a 66% stake in SE. The Czech-Slovak group has an option to buy a further 33% once the over-budget and long-delayed expansion of the Mochovce nuclear plant is operational. However, the Slovak government has pre-emptive rights to step in, which would hand it a controlling stake of 67%.

However, with the costs on Mochovce almost continually spiraling over recent years, EPH says the price could change.

"The basic price for the 50% stake in SPH in this transaction was set at €375mn, provided that €150mn are paid within this first phase of the transaction," EPH explains in a statement. "However, the basic price could vary depending on a set of parameters in the contract; these parameters mainly concern the costs of the completion of units 3 and 4 of the Mochovce nuclear power plant … the operating parameters of the new units, and power prices in Slovakia. An adjustment mechanism will be applied for calculating the balance of the price. Independent experts will calculate the price using the agreed formulae."

The purchase is part of a vociferous drive by EPH over recent years to boost its holdings of coal-fired power around Europe. The deal will hand the group its first interest in a nuclear facility. Meanwhile, it has been buying assets in Western Europe, betting on the establishment of 'capacity markets' to tide markets over whilst they transition to renewable energy. That has raised persistent questions about the company's financial stability, and the dangers to taxpayers in various countries.

Related Articles

Enea buys French utility out of Poland

Enea has acquired a 100% stake in Engie Energia Polska - the Polish business of French power company Engie - for PLN1.26bn (€290mn), the state controlled Polish utility said on March 14. The ... more

EU asks CEE to comment on Russian gas promises

The European Commission has invited comments from Central & Eastern European states on proposals put forward by Russian gas giant Gazprom to meet competition concerns. Visegrad and the Baltic ... more

Iran's crude oil exports climb to 3mn bbl/day for first time since 1979 revolution

Iran’s crude oil exports recently hit 3mn barrels a day for the first time since the 1979 Islamic Revolution, Petroleum Minister Bijan Namdar Zanganeh told state news agency IRNA on March 8. The ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss