B. Sobotka, touted as the top candidate as the finance minister in the new government, did not rule out that CEZ would not be privatized inside the next four years, unless budget deficit will dictate the Cabinet to do so. He also reiterated that he believed CEZ’s acquisition of the regional power distributors in an intended asset swap with the state would stabilize CEZ’s market position. Source: Czech Press Agency.
Although a privatization delay would be negative for the stock, the asset swap is more important for CEZ in terms of an expected impact on share value.
(Jan Hajek)