Alpiq divests Kladno and Zlín coal-fired power plants

Lausanne – Alpiq sells its two Czech coal-fired power plants, Kladno and Zlín, to the Sev.en Energy Group. The sales price is around EUR 280 million (around CHF 310 million). The sale is subject to the usual conditions for closure, particularly the approval of the Czech competition authorities. This divestment allows Alpiq to strengthen its business model in an increasingly decarbonised, digitalised and decentralised energy world.

On 30 October 2018, Alpiq had announced that it was considering the sale of its two Czech coal-fired power plants, Kladno and Zlín. After a structured process, the Alpiq Board of Directors decided to sell the two power plants because all three criteria defined for the sale – price, transaction security and contractual conditions – are fulfilled and the transaction generates the optimal value for Alpiq. On 16 May 2019, Alpiq Ltd. therefore entered into an agreement with Sev.en Zeta a.s. (CZ), which belongs to the Sev.en Energy Group, for the sale of Alpiq Generation (CZ) s.r.o., which holds these two thermal power plants. Sev.en Energy is paying a purchase price of around EUR 280 million (around CHF 310 million), which will result in an estimated net inflow of cash and cash equivalents of around EUR 250 million (around CHF 280 million) to Alpiq upon closure. The impact on consolidated equity is around EUR -180 million (around CHF -200 million). The sale is subject to the usual conditions for closure, particularly the approval of the Czech competition authorities. Closure is planned for the second half of 2019.

Alpiq reduces its CO2 emissions by more than 60 percent

The divestment is for strategic reasons, looking towards an increasingly decarbonised, digitalised and decentralised energy world. The sale reduces the CO2 emissions of Alpiq’s power plant portfolio by more than 60 percent. Alpiq intends to use the proceeds from the transaction to further develop its growth areas and to continue to optimise its balance sheet.

About the Kladno and Zlín power plants

The Kladno coal-fired power plant has an electrical output of 516 MW, was commissioned in 2000 and is wholly owned by the Alpiq Group from 2002. The Zlín thermal power plant generates and delivers electrical energy, process heating and district heating. It has an electrical capacity of 64 MW and a thermal capacity of 376 MW. The coal-fired power plant was acquired in full by the Alpiq Group in 2005.

For more information about the buyer, please visit www.7energy.com

Find more information about Alpiq on www.alpiq.com