Please enable JS
7energy

NEWS

Sev.en Energy plans acquisitions in Western Europe – exec

01 JUN 2018 | Mergermarket shared Intelligence | Katka Krosnar

Czech electricity supplier Sev.en Energy plans to acquire gas- and coal-related assets in Western Europe, Executive Director Alan Svoboda said. It is studying more than five targets at present and hopes to complete at least one acquisition this year.

Sev.en Energy would like to hear about further potential targets, Svoboda said and is interested in coal- and gas-fired power stations, coal mines, and companies selling gas and power to end users.

Management is mainly interested in the United Kingdom, Germany, Italy, Spain and the Benelux region, he said, and in the United Kingdom, is specifically interested in gas-fired plants. The CZK 3.5bn (EUR 136m) turnover company could also look opportunistically at assets in other countries, and sees interesting possibilities in Greece, for example, he said, where the EU is pressurising the government to break the energy monopoly, as reported.

The company could invest up to several hundred million euros in a target, he said; it has EUR 1bn in equity to spend, and can also tap additional debt financing.

Sev.en Energy is participating in several tenders and is also in one-on-one negotiations, he said, declining to name the targets. It largely identifies potential candidates in-house, but also uses external financial and legal advisers as sources of market insights, he said, without further specifying. He did not name the advisers.
Sev.en Energy operates lignite mines and a thermal power station in the Czech Republic, and is now looking to expand internationally, Svoboda said. Western Europe offers the greatest opportunities, largely due to political pressure to switch to renewable energy and dispose of classic energy sources, for example in Germany, he said.

The company reportedly placed a bid for some German coal-fired power plants belonging to French energy company Engie [EPA:ENGI]. It is bidding for two plants near Munich and Bremen, and for a 52% stake in one at Wilhelmshaven, which could sell for a few hundred million euros, according to the report.

Svoboda declined to comment on whether Sev.en Energy is bidding for the Engie assets.

Sev.en Energy operates lignite mines Vrsany and CSA in the North Bohemia region and a thermal power station in Chvaletice and employs more than 2,600 in the Czech Republic. Its EBITDA reached EUR 150m in 2017, Svoboda said.

In 2016, the company extracted more than 9.6m tons of brown coal and expects to generate 4.5 TWh of electricity in 2018. In 2017, its retained profit totalled EUR 284m, according to its website.

Sev.en Energy is owned by Czech businessman Pavel Tykac.

by Katka Krosnar in Prague

Latest News

25Feb

Interview: S&P Global Platts

The potential to stack revenues, improve operational performance and cooperate with Chinese co-partners on technology supported Sev.en Energy’s decision to buy into InterGen, Executive Director Alan Svoboda told S&P Global Platts in an interview February 14. Read more
15Feb

Interview: S&P Global Platts

London—The potential to stack revenues, improve operational performance and cooperate with Chinese co-partners on technology supported Sev.en Energy’s decision to buy into InterGen, Executive Director Alan Svoboda told S&P Global Platts in an interview Thursday. Read more
8Feb

Sev.en Energy actively seeking western European targets, also interested in global opportunistic acquisitions

Czech energy group Sev.en Energy is actively seeking western European targets and is also interested in opportunistic acquisitions in eastern Europe and globally, Executive Director Alan Svoboda said. Read more
1Feb

Sev.en Energy signs agreement to acquire a 50% stake in InterGen

London, Prague – February 1st, 2019 the prominent Czech industrial player, Sev.en Energy, signed an agreement to acquire a 50% stake in the multinational energy company, InterGen N.V. from Canada’s Ontario Teachers’ Pension Plan (Ontario Teachers’). Read more
1Oct

Press release
Sev.en Energy to complete transformation with Lubos Pavlas appointed head of the group

The Sev.en Energy group is to complete its several-month-long transformation as Lubos Pavlas has been appointed the new CEO of the group, with effect as of October 1, 2018. He will be replaced by Vaclav Matys as the head of the Sev.en EC power plant in Chvaletice. Ing. Lubos Pavlas is a graduate of the Faculty of Economics and Electrical Engineering Management of the Czech Technical University in Prague.. Read more
All news