As expected, CEZ sent a request to the antimonopoly office to revoke its ruling, according to which CEZ has to sell its 56.93% stake in distribution company SCE. CEZ argues that since the Czech Republic joined the EU the conditions on the energy market have changed significantly. CEZ is now the ninth largest energy company in Europe with a market share of 2% and believes that if the sale goes ahead, SCE will be sold to a company with a larger market share than CEZ. We remind that CEZ bought stakes in nine distribution companies in 2003 from the state, but the antimonopoly office ordered CEZ to sell three minority and one majority stake (plus the whole 100% in power grid CEPS). These conditions have been fulfilled apart from the sale of the majority stake.
Separately, CEZ CEO M. Roman repeated that the company is producing strong cash-flows which allows CEZ to make new acquisitions and to maintain an attractive dividend policy going forward. However no details on the size of future dividends were mentioned. In Other news, Industry Minister repeated he would not support a sale of CEZ before 2010.
Source: HN
Emilia Zampieri, Patria Finance