Following yesterday news about possibility of mandatory buy-out offer Minister of Finance, Miroslav Kalousek sees this speculation as a non-sense and didn’t comment it more. CEZ’s spokesman didn’t rule it out, however the chances are virtually non-existent. According to MF daily, CEZ argues that although state stake will decline below 66.7%, its share on voting rights will not decline below 66.7% as CEZ’s treasury shares don’t have voting rights.
We believe that state has the transaction fully in his hands and as we mentioned yesterday we don’t see the threat of mandatory minority buy-out as very probable. Note that CEZ won’t be cancelling all 10% of shares but only some 9.1% as 5,000,000 shares are intended for option program. In addition if theoretically threat of mandatory minority buy-out occurs CEZ can still issue convertible bonds, thus number of cancelled shares could further decline to prevent this action.