Czech power utility CEZ AS (BAACEZ.PR) said Monday it will not bid for Russian regional power company OAO TGK-4 (TGKD.RS), despite saying that it would in previous statements.
"After a thorough analysis, we don't see TGK-4 as an appropriate investment for CEZ, mainly regarding (TGK-4's)power generation portfolio and risks related to short deadlines for expected investments (into TGK-4)," the company's spokeswoman Eva Novakova said in a statement.
Only three weeks ago Vladimir Schmalz, head of mergers and acquisitions at CEZ, reiterated CEZ's intention of bidding for the Russian company.
The deadline for TGK-4 bids was today, Monday.
TGK-4, based in central and western Russia, is one of 14 regional generators that RAO Unified Energy System of Russia (EESR.RS) is spinning off. TGK-4 serves 11 regions and has total installed capacity of 3,300 megawatts.
At the same time, CEZ said its plan to build a new 600-megawatt natural gas-fired power plant in Moscow is unaffected by the decision to pull out of the bidding for TGK-4.
Schmalz in mid-March said that negotiations with the Moscow city government over the capital-city power plant should be completed by August.