Ministry of Labor and Social Affairs is expected to propose government swap of 14.2% stake in Prazska Energetika (PRE) for CEZ shares with J&T group. J&T holds 34% stake in PRE. The other option is to sell mentioned stake to majority owner EnBW and city of Prague. The value of the deal is estimated to be some CZK 2bn. Our view: Should the swap takes place, the counterparty would need to provide Ministry of Labor and Social Affairs with some 1.9m CEZ shares, which is approx. 0.3% of total outstanding number of shares. We assume that majority of CEZ shares would need to be bought on the open market should the swap takes place. Given the size of the deal we see the news as neutral.