CEZ’s CEO, Martin Roman announced yesterday that CEZ prepares its dual listing for Warsaw Stock Exchange in the first half of 2006 as Polish market is its main target outside Czech Republic. This should have positive impact on stock’s price as realized Polish pension reform creates significant volume of free capital on the market which CEZ wish to attract.
Furthermore, CEZ repeated plans to restructure all of its Czech distributing companies in 2008 horizon. Their activities will be split according to Energetic Act into business and distributing part and will be overtaken by newly established companies within the group. CEZ intends to reduce their workforce by 18% to 6,900 from 8,400. This should lead to increased operating efficiency. The plan has been however announced earlier therefore, it should have no impact on the stock. We reiterate our BUY recommendation.