According to HN, state plans to sell only 5.7% stake in CEZ as it will cover the needed CZK 33bn for state fond of infrastructure. The Ministry spokesperson said that government decided to sell 7% but this decision can be changed anytime. The Minister of Finance Miroslav Kalousek said that state will sell its stake gradually through stock exchange where, within the limits defined by European commission, CEZ will buy it alone. The whole transaction will last at least 6 months. Following this information Minister of Finance Miroslav Kalousek provided press release stating that there have been no changes in selling state stake in CEZ and reiterated no plans to sell it through third entity.
The 5.7% stake is worth CZK 35.9bn for the current price of CZK 1,065. The gradual sell will limit the overhang supply on the market which we see as positive. CEZ bought 6,021,467 back of its shares as of 29.5.2007 which is 1.02% of share outstanding.