Bulgaria appeals PPC’s Bobov Dol acquisition
The Bulgaria Privatisation Agency has appealed against the court decision for the privatisation of the 630 MW Bobov Dol power plant to go ahead, in a further setback for Greek power utility PPC.
The agency did not give a reason in its statement for opposition to the deal, and was unavailable for comment. However, its opposition has surprised some, as it initially backed PPC’s claim to the plant, and according to local news reports, executive director Todor Nikolov said earlier this month that inviting a fresh sell-off procedure for Bobov Dol would not improve the price for the plant. PPC’s offer of EUR 71 million was described by one observer as “a phenomenal sum”.
However, the Bobov Dol power plant is coal-fired, with 630 MW installed capacity, and is one of the major customers of the owner of the privatised coal mines in Bulgaria. While PPC was unavailable for comment, the utility has coal reserves in northern Greece which are suitable to fuel Bobov Dol, which would disadvantage the local owner.
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