Swiss company Alpiq has agreed to sell its two coal-fired power plants in the Czech Republic to Sev.en Energy Group for nearly $307.15m (€280m).

The divestiture of the two plants, Kladno and Zlín, is expected to further strengthen Alpiq’s business model.

In a statement, Alpiq said: “After a structured process, the Alpiq Board of Directors decided to sell the two power plants because all three criteria defined for the sale, price, transaction security and contractual conditions, are fulfilled and the transaction generates the optimal value for Alpiq”.

With an electrical output of 516MW, Kladno coal-fired power plant was commissioned in 2000 and the plant has been wholly-owned by the Alpiq Group since 2002.

Zlín thermal power plant has an electrical capacity of 64MW and a thermal capacity of 376MW. It generates and delivers electrical energy, process heating and district heating. The coal-fired power plant was acquired by Alpiq in 2005.

Completion of the deal is subject to regular closing conditions and approval of the Czech competition authorities.

Last October, Alpiq announced its intentions to sell the two power plants. The divestiture of the coal-fired plants is expected to reduce the carbon emissions of Alpiq’s power plant portfolio by more than 60%.

Completion of the deal is expected to take place during the second half of this year.