CEZ A.S.

M&A Activity • Mar 31, 2021

CEZ Group has completed the sale of its Romanian companies to MacquarieInfrastructures and Real AssetsToday, the sale of Romanianassets was settled between CEZ Group and funds managed by MacquarieInfrastructures and Real Assets (MIRA). The sale includes a total ofseven Romanian companies. The share purchase agreement was signed lastOctober, and the transaction was approved by the European AntitrustAuthority and the Romanian Supreme Council of National Defence. CEZremains present in Romania through CEZ ESCO Romania and CEZ TradeRomania.

Eighteen months after the start of the divestment process, CEZ Group hassuccessfully concluded a transaction in which its Romanian assets havebeen acquired by funds managed by MIRA. Seven Romanian companies(Distributie Energie Oltenia, Ovidiu Development, Tomis Team, MW TeamInvest, CEZ Vanzare, TMK Hydroenergy Power and CEZ Romania) are thuschanging their owner.

The sale is part of CEZ Group's strategic plan to divest selected assetsin some countries. In Romania, CEZ Group remains active in the area oftrading (through CEZ Trade Romania) and providing modern energy services(through High-Tech Clima).

In line with the new strategy, CEZ Group launched a divestment processof its Romanian assets in September 2019. A high level of competitionamong investors was maintained throughout the entire transaction. MIRA'soffer was the most attractive of all the submitted bids. The transactionwas approved by the European Directorate-General for Competition andsubsequently by the Supreme Council of National Defence (ConsiliulSuprem de Apărare a Ţării). Despite the COVID-19 pandemic, the wholeprocess was managed within 18 months. Through the sale of Romaniancompanies CEZ will increase its debt capacity, will be able to redirectfunds to development investments related to the Group's current strategyand will be able to pay higher dividend to its shareholders.

MIRA is the world's largest infrastructure manager and is part ofMacquarie Group, a top 10 Australian company by market capitalisation.MIRA is a long-term investor with extensive experience managingessential electricity infrastructure around the world.

CEZ entered the Romanian energy market in 2005 with the acquisition ofthe distribution company Electrica Oltenia, which operates in thesouthwestern part of the country, operates 86,665 km of electricitynetworks and serves approximately 1.4 million customers. In Romania, CEZalso operated production sources with a total installed capacity of 622MW.