As expected, CEZ has signed an agreement with the National Property Fund to purchase the state’s 56% stake in Severoceske doly (SD) for CZK 9.05bn, which will give CEZ a majority stake of 93% in the company. We reiterate that we view the acquisition as positive for CEZ from a strategic point of view, i.e. a stable price and supply of coal.
Separately, Enel expects to complete the 3rd and 4th blocks of the Slovak Mochovce NPP by 2021. Despite the completion of the two new blocks, we expect Slovakia to be a net electricity importer