By Sean Carney
The Slovak state is seeking a majority stake in the country's
dominant electricity company Slovenske Elektrarne AS, currently
majority-owned by Italy's Enel Spa (ENEL.MI), but the price must be
right and, in the meantime, the Italian energy firm is responsible
for completing the construction of two nuclear reactors, Slovakia's
prime minister said Wednesday.
"Everything is a question of price," Robert Fico said after
meeting with Enel Chief Executive Francesco Starace in
Bratislava.
Enel bought a 66% stake in Slovenske from Slovakia in 2006 for
840 million euros ($916.9 million) and is in the midst of building
two additional reactors at the Mochovce nuclear power plant in the
country.
However, as with atomic power plant construction elsewhere,
there have been numerous delays, design changes and cost
overruns.
Mr. Fico said he is demanding precise price and costs outlays,
dates, conditions and total certainty on the remaining construction
of two nuclear reactors. The first unit should be put into
operation in 2017.
Mr. Fico said it would be advantageous to get a majority in
Slovenske Elektrarne but it isn't necessary for the state to get
100%.
Enel said last year that it was considering selling Slovenske to
help it raise roughly EUR4 billion to pay down debt. However the
Italian company has floated a block of shares in its Spanish unit
Endesa SA (ELE.MC) and so no longer urgently needs to sell its
Slovak portfolio, company officials earlier said.
Nevertheless, Enel has set May 9 as the latest deadline for
binding bids for its 66% stake in Slovenske. Last week, Enel
officials said they hadn't received any bids yet.
State-run power companies in the Czech Republic and Hungary, as
well as investors from Finland and China, had expressed preliminary
interest in Enel's stake in Slovenske, but potential bidders have
noted that the unfinished nuclear units posed major risks to any
possible bids.
Mr. Fico says he respects Enel's wish to possibly sell down its
stake in SE, though he said it doesn't match the Slovak
government's strategic goal.
Constructing two nuclear reactors is a key project for the
country and Enel bears responsibility to finish the construction
regardless of its divestment plans, Mr. Fico said.
If Enel decides to sell part or all of its stake in Slovenske,
it could further draw out the construction of the reactors, raise
costs and put the project into question; as such, it is now the
Slovak state's priority to take a majority stake in the utility,
Mr. Fico said.
Write to Sean Carney at sean.carney@wsj.com
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