The Cabinet should debate the sale of the state’s 56% stake in Severoceske doly (SD) on September 29. CEZ is reportedly offering CZK 9bn, which is less than the CZK10bn we and the market expected. Should the information prove correct and the state accepts CEZ’s bid, we would regard the acquisition as positive. In addition, our valuation does not assume any breaking of current mining limits, which would increase the value of the state’s stake in SD beyond CZK 10bn.