Czech electricity utility CEZ AS (BAACEZ.PR) said Wednesday that it has signed a deal with the Albanian government to buy a 76% stake in Albanian power distributor Operatori i Sistemit te Shperndarjes, or OSSH.
CEZ won the privatization tender for the majority stake in OSSH last October by offering EUR102 million for the Albanian company.
OSSH has about 1 million customers, or about one-third of Albania's population. Albania suffers from a dearth of local generators and covers about 40% of its demand through electricity imports, mostly from Greece.
CEZ said power demand in Albania, one of the poorest countries in Europe, is currently at 2 megawatt hours a head, one third of the requirement in the Czech Republic.
Analysts expect Albanian power demand to rise 5% a year, compared with a 2%-3% rise in other European countries, CEZ said.
At 1001 GMT, CEZ shares traded up 3.6% or 2 koruna ($1.2) at CZK701.1, in line with the overall market rise.