NET4GAS Up For Sale By Czech RWE Subsidiary

Around 10 companies will bid to buy NET4GAS, a long-distance gas network operator held by the Czech Republic’s RWE Transgas which, in turn, is a subsidiary of RWE Germany. The sale, which is slated for completion by the end of 2012, will involve the 2,500-kilometer network of gas pipelines within Czech territory. RWE plans to sell off NET4GAS as part of a larger objective of raising EUR 11 bln by the year 2013 through the sale of some of its assets. The majority of bidders are expected to be from the domestic energy investment sector in the country. Likely bidders have already been identified: Czech energy company EPH as well as KKCG, which is an oil mining company, have shown interest in the sale; Penta Investments and Polish Gaz-System are also rumored to be potential buyers. The unit could sell for as high as 50 mln crowns, or USD 2.7 bln.