May 17, 2019 / 7:06 AM / 3 months ago

Alpiq sells Czech power plants to Sev.en Energy for $313 mln

PRAGUE, May 17 (Reuters) - Swiss electricity producer Alpiq has agreed to sell its two Czech coal-fired power stations to the Czech Republic's Sev.en Energy for around 280 million euros ($313 million), the companies said on Friday.

Sev.en, which is owned by investor Pavel Tykac and operates a power plant and a lignite mine in the Czech Republic, will buy a 100 percent of Alpiq's 516-megawatt coal and gas-fired plant at Kladno near Prague and its 64-megawatt plant in the eastern city of Zlin, Alpiq said.

"The divestment is for strategic reasons, looking towards an increasingly decarbonised, digitalized and decentralised energy world," Alpiq said.

"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."

Sources said on Wednesday that Czech electricity producers CEZ and EPH had also bid for the assets.

"The strategic transition between conventional energy and modern energy generating capacities is an opportunity for us," Sev.en's Chief Executive Lubos Pavlas said in a statement.

"We want to be a part of this change in the position of those who ensure the stability and safety of supply while deploying new modern solutions. The acquisition of the Czech coal-fired power plants of Alpiq exactly fits within this strategy." ($1 = 0.8949 euros) (Reporting by Jan Lopatka; Editing by Susan Fenton)

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