CEZ says Bulgarian government unlawfully prevented asset sale

EuroHold Bulgaria AD

12/04/2019 16:01

PRAGUE, April 12 (Reuters) - Czech electricity producer CEZ
said on Friday it had terminated a contract to sell a power
distribution firm it owns in Bulgaria to Bulgarian firm Inercom,
blaming the government for the failure of the deal.
    "The reason for the termination of the contract by ČEZ, a.
s., is frustration of the fulfillment of the conditions
precedent, and thus closing of the contract, by unlawful
obstructions of the Bulgarian State," CEZ said in a statement.
    "The negotiations on the sale of the assets will continue."
    In February 2018 CEZ signed a contract to sell the firm that
provides electricity to more than three million Bulgarians,
together with other assets in Bulgaria, to Inercom for an
estimated 320 million euros.
    The country's anti-monopoly regulator blocked a deal last
July and Inercom filed an appeal. 
    CEZ has already received two other binding offers for the
assets from India Power and Eurohold, the state-controlled Czech
utility said on April 1.  urn:newsml:reuters.com:*:nL8N21J4CO

 (Reporting by Jan Lopatka)
 ((jan.lopatka@thomsonreuters.com; +420224190474; Reuters
Messaging: jan.lopatka.thomsonreuters.com@reuters.net))