CEZ Acquisition Will Presage Further European Expansion

Czech state-owned utilities major CEZ has finalised a EUR102mn (US$131.82mn) agreement with the government of Albania for the acquisition of a 76% stake in state-owned electricity distribution company OSSH. The move marks a major step for CEZ in its declared strategy of expanding in markets in south-eastern and central Europe to consolidate its presence in the region and pursue new ventures in the western Balkans. OSSH had an estimated value of EUR130mn in September 2008, with debt totalling EUR150mn, and CEZ has committed to investing EUR200mn in the next four years to upgrade the existing distribution network.

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