ČEZ agrees to sell Romanian assets to Australia’s MIRA

Czech energy company ČEZ Group has signed an agreement to sell its seven businesses in Romania, including the 600 MW Fantanele-Cogealac onshore wind farm, to infrastructure management firm Macquarie Infrastructure and Real Assets (MIRA).

Apart from the renewable energy portfolio, the assets being sold to MIRA also include ČEZ’s electricity distribution and energy supply businesses in Romania, according to a press release from the Czech company. ČEZ said it remains active in Romania, focusing on its trading and energy services businesses – ČEZ Trade Romania and High-Tech Clima.

The closing of the transaction remains subject to approvals from the EU’s competition regulator and Romania’s national defense council. In the press release, ČEZ did not disclose the amount it will get for the seven businesses, but it earlier valued them at EUR 1.07 billion, against the book value of EUR 1.5 billion.

ČEZ’s Romanian assets attracted strong interest

The sale of ČEZ’s Romanian businesses was launched somewhat over a year ago, attracting strong interest. The company said in November 2019 that it had received over 30 expressions of interest, before inviting bids.

The sale will enable ČEZ to invest in decarbonization and renewable energy

The sale will enable ČEZ to channel resources into investments in line with its current strategy, which is focused on decarbonizing the production portfolio, developing renewable energy, and providing modern energy services in the Czech Republic and across Europe, the company said.

MIRA is part of Australia’s Macquarie Group

MIRA is part of Macquarie Group, an Australia-based multinational investment bank and financial services company. Macquarie Group is a top 10 Australian company by market capitalization, according to ČEZ’s press release.

ČEZ entered the Romanian energy market in 2005, when it acquired electricity distribution company Electrica Oltenia. In 2011, it bought four smaller hydropower plants near Reşita, adding 22 MW of hydro capacity to its Romanian portfolio. The Fantanele-Cogealac project was completed in 2012, becoming the largest onshore wind farm in Europe, ČEZ recalled in the press release.