Czech energy company Sev.en to acquire Swiss Alpiq Generation for €7.2bn

Czech energy company Sev.en to acquire Swiss Alpiq Generation for €7.2bn
Sev.en Energy will buy 100% of Swiss electricity producer and energy service provider Alpiq Generation.
By nto in Prague May 20, 2019

Czech energy company Sev.en Energy owned by billionaire Pavel Tykac has won the tender for the acquisition of a 100% stake in Swiss electricity producer and energy service provider Alpiq Generation which operates CHP plants in Kladno a Zlin, the company said in its press release published on May 17.

Sev.en Energy will pay approximately CZK7.2bn (€280mn), which will result in an estimated net inflow of cash and cash equivalents of around €250mn to Alpiq upon closure. The takeover will be carried out after approval by the Czech anti-monopoly office. 

The company competed in the tender against the energy company CEZ, Bohemia Energy group of billionaire Jiri Pisarik and Energeticky a holding of billionaire Daniel Kretinsky, daily reported.

“The strategic transition between conventional energy and modern energy generating capacities is an opportunity for us. We want to be a part of this change in the position of those who ensure the stability and safety of supply while deploying new modern solutions. The acquisition of the Czech coal-fired power plants of Alpiq exactly fits within this strategy,” said Sev.en Energy’s CEO Lubos Pavlas.

“The divestment is for strategic reasons, looking towards an increasingly decarbonised, digitalised and decentralised energy world. The sale reduces the CO2 emissions of Alpiq’s power plant portfolio by more than 60%. Alpiq intends to use the proceeds from the transaction to further develop its growth areas and to continue to optimise its balance sheet,” according to Alpiq's press release.

“Following the successful acquisition of InterGen with its power stations in England and Australia the acquisition of the two CHP plants in the Czech Republic is another major step forward in pursue of our growth strategy. Sev.en Energy’s position on the Czech market has thereby been significantly strengthened,” said Sev.en executive director responsible for the group’s expansion Alan Svoboda.

In 2018, Sev.en Energy announced an ambitious programme of international expansion. In the Czech Republic, the group operates two brown coal surface mines and four coal-fired power station units, which are currently going through an upgrade for CZK7bn. 

In April, Sev.en Energy signed an agreement with Chinese energy company China Huaneng Group on the joint ownership of InterGen company. “Cooperation with Chinese partners is for Sev.en Energy a significant step toward international growth. We are ready to take advantage of the potential further development of InterGen's production base,” said Pavlas at the time.