According to Deputy Industry Minister Martin Pecina the Ministry will submit a privatization proposal for Severoceske Doly (SD) by the end of this week. The plan assumes that CEZ is to buy the state’s 55.8% stake. CEZ already owns 37% in the company. The price will be set on the basis of an expert appraisal. The Cabinet is to discuss the proposal in July. If the plan is approved the transaction could be settled by year end. In another case, the privatization of SD may not be completed before the June 2006 elections. Martin Pecina also repeated that there are no reasons to privatize CEZ due to the high dividend payments, unless it is ordered by the EU.
Separately, today CEZ is holding a press conference at 11:00am CET on the progress of its transformation and integration plan VIZE 2008. The company will present the costs and advantages of the transformation and the future effects of the restructuring of the group.
Romania plans to set September as the deadline for binding bids for Electrica Muntenia Sud, a distribution company. Romania plans to sell a 67.5% stake in the distributor. Companies interested in the distributor are CEZ (the Czech Republic), RWE (Germany), E.ON (Germany) and Enel (Italy).