CEZ : Slovakia to decide in SE privatization process

Today the Slovak Economy Minister, Pavol Rusko, is to decide whether to continue exclusive talks with Enel only or to invite CEZ into negotiations regarding the sale of the state's 66% stake in Slovenske elektrarne (SE). Rusko threatened to stop negotiations with Enel and possibly start talks with CEZ (which finished second in the tender) or even to cancel the tender last week as he was disappointed with Enel's slow progress on accepting the state's conditions. Enel won the SE tender offering EUR 840m while CEZ came second with an offer of EUR 690m.

Separately, CEZ should be transformed into a holding structure with ten subsidiaries in order to become more effective and provide better services, which should lead to savings of CZK billions according to the CEZ CEO. The CEZ spokesman said that the company also plans to radically reduce the number of its employees by thousands. Also, in line with EU directives, CEZ is obliged to separate its distribution and sales activities in all regional distributors by January 1 2007 with total costs of CZK 1-2bn.
Source: CEZ, CTK

Tomáš Gatěk, Patria Finance