CEZ: Following the utility’s AGM on Wednesday, which approved the purchase of regional electricity distributors from the state and the sale to the state of a majority stake in the transmission-grid operator, CEPS (even though its valuation is yet to be done), the finance minister should sign the relevant sale contracts with CEZ today, on the behalf of the state National Property Fund (the majority stake holder in CEZ).
Although this may be an important step towards transaction completion, possible legal challenges (some high-level NPF executives oppose the transaction as is) and the requirement of the Anti-Monopoly Office’s approval (the AMO may look unfavorably on the low valuation of the distributors or the increased market share of CEZ) casts the transaction in uncertain light.
We believe that the transaction completion will be largely influenced by the election outcome, as the two main opposition parties in Parliament have been critical of the plan.
(Jiri Soustruznik)