BRATISLAVA, February 11, (WEBNOVINY) — Minister of Economy Juraj Miskov prefers selling a 100-percent stake in the country’s six largest heating plants. French companies Veolia, Dalkia, Cofely, German company E.ON and also Italian investors have expressed interest in the heating plants, Miskov told Reuters. He also expects interest on part of local companies.
The French company Dalkia has confirmed its interest in privatizing Slovak heating companies in Bratislava, Zilina, Trnava, Martin, Zvolen and Kosice to SITA news wire. “Since Dalkia’s portfolio comprises dozens of such heating companies, our company will definitely open talks on privatization terms,“ said Petra Habanova from the communication department. Dalkia was already interested in acquisition of a stake in these heating companies five years ago when the government of Mikulas Dzurinda had planned to sell them. Dalkia planned to buy all heating companies at that time. “Since the economic situation in these companies has changed in the meantime, it is too soon to say which heating companies will be interesting for our company before detailed studies and audits are carried out,“ said Habanova and added that the company was interested in majority stakes.
Investment groups may also participate in privatization of the six biggest heating companies. Five years ago, Slavia Capital was interested in acquisition of four heating companies, names of which the group did not specify at that time. Spokesman of Slavia Capital Peter Bencurik did not rule out interest in acquiring a stake in heating companies in a new tender. “Neither tender terms nor the volume of stakes have been disclosed yet but in our decision-making we will definitely consider financial situation in individual companies, which can only be assessed via audit. The group will decide based on the audit,“ said Bencurik.
“Yes, our company is considering submitting its bid in the potential tender. The company will make a concrete decision after tender terms are released,“ said spokesman of the private equity group Penta Martin Danko. Penta showed interest in all heating companies, which are now for sale, also five years ago.
The German company MVV Energie is also expected to bid for a stake in heating companies through its Czech 100-percent subsidiary MVV Energie CZ. “The company is planning to examine the subject of privatization and make a decision on whether to tender for a stake based on its findings. It is very likely that the company will submit its bid,“ said Chairman of the Board of Directors of MVV Energie CZ Vaclav Harach. The company was interested in the purchase of all heating companies five years ago. “Economic situation has definitely changed since then so we cannot make any definite decision before a detailed analysis is completed,“ said Harach adding that the company was only interested in a majority stake.
Energeticky a Prumyslovy Holding, with J&T among its shareholders, has neither confirmed nor ruled out its participation in the privatization. “We do not comment on our acquisitions and business plans,“ communication director of EPH Martin Manak said for the SITA news agency.
There are, on the other hand, companies which are unlikely to bid for a stake in these heating companies despite their earlier interest five years ago. These companies include for example the gas utility Slovensky Plynarensky Priemysel (SPP) and the Czech energy group CEZ. “SPP has a negative experience with regulated business and as long as heat production is a regulated segment it is very unlikely that SPP will consider participation in this privatization,“ said SPP spokesman Ondrej Sebesta. “We do not assume we would be interested in these assets,” CEZ spokesman Ladislav Kriz briefly assessed company’s stance.
The Cabinet agreed on Wednesday to sell country’s six largest heating plants, in which the state holds a 100-percent stake. The Cabinet recommended the head of the executive committee of the government privatization agency, FNM to prepare a plan of their privatization in cooperation with the ministries of finance and economy. He said that there are several reasons speaking in favor of sale of the heating firms. He listed among them unfavorable economic situation of the companies, their growing indebtedness, and necessary investments. The privatization is in the public interest, Miklos underscored. In his words, heating plants that generate profit do so thanks to the sale of emission allowances.
The FNM and the Ministry of Finance suggested the sale of a 100-percent stake in six largest central heating companies. “Comparing the expected revenue from the sale of a 100-percent stake with the expected income from dividends, the sale of the equity stake in the heating companies to a strategic investor is more advantageous. Immediate proceeds from the sale is more beneficial from the fiscal point of view as well as regarding consolidation of public funds, than the FNM’s long-term position in companies of local importance,” the FNM stated in an analysis of economic benefits of holding the stock with the aim of collecting dividends or selling the shares. FNM and the ministry estimate that the current market price of the heating companies currently stands between EUR 160 to 200 million.
FNM emphasized that privatization of the heating companies would not affect the price of supplied heat. “The heat price will still be regulated based on regulations set by an independent authority, the Regulatory Office for Network Industries (URSO),“ underscored the FNM.
SITA