CEZ decided on Extraordinary Shareholders’ Meeting to set up time schedule for spinning off Detmarovice

ČEZ (724 CZK, -0,81%) at its yestreday´s meeting decided on the date of holding an extraordinary shareholders’ meeting, December 18th this year. The reason for convening the shareholders’ meeting on this date is to set up a time schedule for spinning off Dětmarovice power station into a separate subsidiary (as was the case in the past with Chvaletice and Počerady power stations).

All details will be stated in the announcement to hold the shareholders’ meeting which will be published sufficiently in advance as required by law.

The spinoff of Dětmarovice power station (same as in the case of the previously spun off power stations) is merely a process matter to prepare the power station for potential sale, but it does not mean that it will be actually sold. The selling process takes place completely separately from this administrative process.

ČEZ is offering for sale one of its coal-fired power stations. Candidates are Počerady, Chvaletice, Tisová together with Mělník 3 power station and Dětmarovice. The considered sale is related to the decision taken by ČEZ to terminate the investigation being conducted with the European Commission since 2009 in the form of a so called settlement. In this settlement ČEZ has undertaken to sell one of its coal-fired power stations. With the exception of Počerady (1000 MW), all the other candidate power stations are roughly 800 MW facilities. Selling one of its power stations is in harmony with the ČEZ’s strategy to operate in the future only a limited number of modernised coal-fired power stations.

In the case of Počerady and Chvaletice power stations, the reason for considering their sale is the uncertainty of coal supplies from 2013 due to as yet not concluded negotiations with the coal supplier, Czech Coal.

By signing the settlement agreement, ČEZ will be obliged to sell one of the above named plants. However, this does not preclude the possibility that, for business and strategic reasons, the Group may ultimately accept more offers and sell more power stations if the offers are attractive.