CEZ A.S.

M&A Activity • Oct 23, 2020

ČEZ Group has reached an agreement to sell its Romanian assets to fundsmanaged by Macquarie Infrastructure and Real Assets ("MIRA"). The assetscomprise of seven companies, including electricity distributionnetworks, energy supply and the Fantanele Cogealac wind park, amongothers. Transaction documentation was signed today. Closing of thetransaction is subject to receiving approval from European antitrustauthorities and the Romanian Supreme Council of National Defence.

The divestment of selected Romanian assets is part of CEZ Group´s newstrategy to divest chosen assets in certain countries. By sellingRomanian assets, ČEZ will increase its debt capacity and will be able tochannel resources into investments in line with the current strategy,which is focused on decarbonizing the production portfolio, developingrenewable energy and providing modern energy services in the CzechRepublic and across Europe.

The sale of ČEZ assets in Romania to funds managed by MIRA was approvedby ČEZ Group's bodies just 13 months after the transaction process'kick-off. ČEZ Group and MIRA have reached an agreement on the sale ofall three business segments that were included in the transaction:electricity distribution, energy supply and an operational renewableenergy portfolio. ČEZ Group remains active in Romania, focusing on itstrading (CEZ Trade Romania) and energy services business (High-TechClima). Société Générale (together with its group companies Komerčníbanka and BRD - Groupe Société Générale) acted as Exclusive FinancialAdvisor to the ČEZ Group on the sale.

ČEZ experienced strong interest for its assets. Despite the difficultenvironment caused by COVID-19, ČEZ and Société Générale maintained ahigh level of competition in the transaction. MIRA submitted the mostattractive offer, which was confirmed by independent valuation reports.The transaction needs to be approved by the European Directorate-Generalfor Competition and the Romanian Supreme Council of National Defence(Consiliul Suprem de Apărare a Ţării, CSAT).