The Czech Ministries of Industry and Finance repeated their plan to extend the deadline for selling the state’s 55.4% stake in the biggest Czech coal mines, Severoceske doly (SD), until the end of February 2005, citing a need to complete agreements between CEZ and SD regarding coal supplies. The opposition party’s (ODS) victory in the Senate elections is also partly behind the extension as the previous SD privatization attempts were criticized by ODS. Note that CEZ owns 37.20% in SD. Among other plans, there is a possibility that CEZ will form a joint venture with the Czech Appian Group for buying the remaining state’s stake. Neutral.
Source: Bloomberg
Tomáš Gatěk, Patria Finance