CEZ plans to make a public buyout offer for Severoceske doly (SD) and de-list the stock from the Prague stock exchange. The buyout price has not been revealed; yesterday’s closing price was CZK 1,880. CEZ bought a majority stake in SD last year for CZK 9.05bn (some CZK 1,800 per share) and increased its stake to 93.1%. The transaction has been approved by the antimonopoly office in late November. We have expected this process and the news should not have any impact on today’s trading. We reiterate our Buy recommendation on CEZ.