The new finance minister, B. Sobotka, said that it is unlikely the government would privatize CEZ during its mandate, in line with Prime Minister Spidla’s comments earlier in the day.
We believe that once CEZ acquires the regional power distributors as part of the government’s energy-sector restructuring plan, which is increasingly expected, its ownership structure will have little bearing on its stock value in the medium term. The stock could experience a negative sentiment related to abandoned privatization in the immediate term, however.
The Czech daily HN reports today that CEZ may not achieve a majority in ZCE (one of the regional distributors it is to acquire) since a transfer of a 2% stake in ZCE owned by CKA (a state-owned agency) to CEZ is being opposed by CKA. The situation should be decided on Thursday.
Jiri Soustruznik