PM wants to sell SD to CEZ for at least CZK 7.5bn The Cabinet is considering an option of selling its 55% stake in Severoceske doly (SD) directly to CEZ. The Cabinet should receive a proposal prepared by the Ministries of Finance and Trade and Industry this month. Prime Minister Jiri Paroubek said yesterday that the price for the state’s stake would have to be significantly higher than CZK 7.5bn. Note that CEZ currently owns a 37% stake in SD. We would consider CEZ’s majority control over SD as positive from the strategic point of view. Nevertheless the company has already secured coal supplies for its coal power plants until 2052, hence CEZ should not be under pressure regarding the SD price.