Equity
Hungary's state-owned MVM, MOL's Slovnaft make joint non-binding bid for majority stake in Slovenské Elektrárne
Joint effort to acquire majority stake in Slovenske Elektrarne
“The bid is in-line with Slovnaft’s overall long-term business strategy to maintain and further strengthen its positions in the regional energy market by diversifying its oil and gas portfolio," MOL said in a joint statement.
The companies did not disclose financial terms of the deal.
“With this regional partnership the vertically integrated energy company MVM Group aims to develop further and expand its business portfolio in the CEE region. MVM Group has also more than 30 years of experience in nuclear power plant operation," it added.
MOL also noted that both Slovnaft and MVM Group see “great potential in managing SE’s nuclear and water plant capacities" as both of them “aim to provide emission-free energy to regional markets."
“Acquiring the stake in SE would strengthen the security of supply of the CEE region both in the field of electricity and natural gas contributing to the development of the EU's single energy market," MOL said.
“A successful bid would also open-up new export opportunities to regional markets and would also facilitate the creation of additional working places in the mid-term," it added.
Potential buyers queue up
MVM Group is happy to assume the role of multinational companies that are exiting this region, the company said on 7 November, responding to a local press report that Hungary was in talks to buy the Slovakian Electricity Works (Slovenske Elektrarne), as Enel, the second-largest power company in Europe, wanted to sell 66% of the company.
Hungarian news portal 444.hu said not only Hungary is in race for Slovenske Elektrarne, which - among others - operates the Mochovce (Mohi) nuclear power plant and the Gabcíkovo power plant, as potential buyers include Czech, Finnish, Russian, French and Chinese firms.
33% of Slovenske Elektrarne is held by the state and 66% is owned by Italian energy giant Enel, which acquired it in 2006 for EUR 839 m.
A number of rumours surfaced about the potential buyers since the announcement Enel made to sell its stake in SE. The Slovakian state has pre-emptive right but most likely it does not have sufficient funds to actually use it. It is almost certain that the 66% package would be too large a bite, not only for the state but also for such a large company as MVM or MOL. Hence the joint bid.
As a result several companies have been mentioned so far as potential buyers, including
Slovenské Elektrárne also owns two NPP blocks of 470 MW capacity currently under construction.
Slovak Prime Minister Robert Fico said in September that the government was looking at ways to strengthen its position in Slovenske Elektrarne, in which it owns a 34% share.
Enel, Europe's most indebted utility, is looking to sell more than 4 billion euros of assets this year. It is Europe's No. 2 utility by installed capacity. Earlier this month Enel raised its forecast for net debt at the year-end to EUR 39-40 billion, up from a previous estimate of EUR 37 bn.
MVM had bought the local gas trading and storage units of Germany's E.ON. It has also acquired a 49.8% stake in Budapest gas utility Főgáz from Germany's RWE.
Slovenské Elektrárne also owns two NPP blocks of 470 MW capacity currently under construction.
“The bid is in-line with Slovnaft’s overall long-term business strategy to maintain and further strengthen its positions in the regional energy market by diversifying its oil and gas portfolio," MOL said in a joint statement.
The companies did not disclose financial terms of the deal.
“With this regional partnership the vertically integrated energy company MVM Group aims to develop further and expand its business portfolio in the CEE region. MVM Group has also more than 30 years of experience in nuclear power plant operation," it added.
MOL also noted that both Slovnaft and MVM Group see “great potential in managing SE’s nuclear and water plant capacities" as both of them “aim to provide emission-free energy to regional markets."
“Acquiring the stake in SE would strengthen the security of supply of the CEE region both in the field of electricity and natural gas contributing to the development of the EU's single energy market," MOL said.
“A successful bid would also open-up new export opportunities to regional markets and would also facilitate the creation of additional working places in the mid-term," it added.
Potential buyers queue up
MVM Group is happy to assume the role of multinational companies that are exiting this region, the company said on 7 November, responding to a local press report that Hungary was in talks to buy the Slovakian Electricity Works (Slovenske Elektrarne), as Enel, the second-largest power company in Europe, wanted to sell 66% of the company.
Hungarian news portal 444.hu said not only Hungary is in race for Slovenske Elektrarne, which - among others - operates the Mochovce (Mohi) nuclear power plant and the Gabcíkovo power plant, as potential buyers include Czech, Finnish, Russian, French and Chinese firms.
33% of Slovenske Elektrarne is held by the state and 66% is owned by Italian energy giant Enel, which acquired it in 2006 for EUR 839 m.
A number of rumours surfaced about the potential buyers since the announcement Enel made to sell its stake in SE. The Slovakian state has pre-emptive right but most likely it does not have sufficient funds to actually use it. It is almost certain that the 66% package would be too large a bite, not only for the state but also for such a large company as MVM or MOL. Hence the joint bid.
As a result several companies have been mentioned so far as potential buyers, including
- French GDF Suez, which did not comment the speculation, but they are more likely to target some of Enel’s Romanian units.
- Among the potential buyers they mentioned the Chinese,
- EPH and CEZ of the Czech Republic, the latter of which tried to take over Slovenske Elektrarne, only they were beaten by Enel that time. CEZ said earlier it would buy a part of the stake but definitely not the entire 66%. It seems to have changed its mind, though. CEZ has sent a letter to Italy's Enel expressing interest in buying Enel's 66% stake in SE, CEZ said on Wednesday. But in line with earlier indications, the Czech state-owned utility highlighted concerns related to the construction of the over-budget and delayed Mochovce nuclear power plant. CEZ has previously said it was unwilling to take on the risk of rising costs and delays of the project.
- Russia’s Rosatom was also mentioned in this group
- and now a joint bid by MVM and MOL’s Slovnaft.
Slovenské Elektrárne also owns two NPP blocks of 470 MW capacity currently under construction.
Slovak Prime Minister Robert Fico said in September that the government was looking at ways to strengthen its position in Slovenske Elektrarne, in which it owns a 34% share.
Enel, Europe's most indebted utility, is looking to sell more than 4 billion euros of assets this year. It is Europe's No. 2 utility by installed capacity. Earlier this month Enel raised its forecast for net debt at the year-end to EUR 39-40 billion, up from a previous estimate of EUR 37 bn.
MVM had bought the local gas trading and storage units of Germany's E.ON. It has also acquired a 49.8% stake in Budapest gas utility Főgáz from Germany's RWE.
Slovenské Elektrárne also owns two NPP blocks of 470 MW capacity currently under construction.
