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UPDATE 1-Czech energy firm EPH sells stake in infrastructure assets to Macquarie

Published 17/10/2016, 10:11 pm
UPDATE 1-Czech energy firm EPH sells stake in infrastructure assets to Macquarie
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(Adds details, company comment)

PRAGUE, Oct 17 (Reuters) - Czech privately-held energy group EPH agreed to sell a 30 percent stake in its EP Infrastructure (EPIF) unit to an investor group led by Macquarie Infrastructure and Real Assets, EPH said on Monday.

EPH, which has grown into one of central Europe's biggest energy firms in the past few years, scrapped plans for an initial public offering of the unit in April and said then it would consider selling a stake directly to investors. Sources at the time said talks had started with Macquarie. company did not disclose financial details of the deal.

EPH created EPIF by carving out its steadiest businesses that have long-term contracts and stable earnings like gas and power distributors, gas storage and transmission and heating assets. It is separate from EPH's power generation assets.

EPIF includes EPH's flagship 49 percent stake in Slovak gas pipeline operator Eustream, which delivers Russian natural gas via Ukraine to the European Union and European gas to Ukraine.

The deal with Macquarie should close early in the first quarter of next year. EPH will retain management control.

EPH will also be able to use proceeds from the sale to buy out its minority shareholders, which will leave Chief Executive Daniel Kretinsky as a 94 percent owner with other management holding the rest.

The related shareholder deals value EPH at 5 billion euros ($5.6 billion), the company said. The selling parties are Patrik Tkac of bank J&T - Kretinsky's long-term bushiness partner - and the bank's small shareholders.

EPH has grown via acquisitions in Britain, Germany, Italy and Slovakia in recent years, buying up coal, gas and nuclear assets cheaply as other big players in European markets shift away from conventional power plants.

($1 = 0.8928 euros)

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