The Finance Minister repeated yesterday, that the Severoceske doly (SD) should be privatized by the end of the year. Please note that the Cabinet also seems to be support a plan saying that CEZ and Appian Group may set up a joint venture that would buy the state's 55% stake in SD without a public tender. The government should discuss the plan by end-October. CEZ would contribute to the JV by its current 38% stake in SD and Appian would put in its 100% stake in another domestic coal mining company, Mostecka uhelna. Both CEZ and Appian would pay approx. CZK 4bn each for the 55% stake. Note that CEZ's possible bid should also reflect the strategic importance of having control over the entire vertical line in the CR; in this perspective the indicated amount seems acceptable for CEZ.
Tomáš Gatěk