CEZ’s potential buy of power group TGK-4 valued at 16bn crowns

The purchase price for the 47.3 pct stake in Russian power generation firm TGK-4 that Czech energy group CEZ is considering bidding for is estimated at 16 bln crowns.

The acquisition will require an additional investment of 40 bln crowns in TGK 4’s 26 power plants, 600 municipal boilers and 5,000 kilometres of heating pipeline.

The daily MF Dnes reported that “CEZ is likely the favourite” in the tender, in which Russian energy group RAO UES, holder of the stake, is accepting bids for the stake until the end of November.

“I can’t comment on the estimates,” CEZ spokesman Ladislav Kriz told Thomson Financial News, adding that CEZ is currently conducting due diligence at TGK-4, after which it will say whether it will bid for the stake.