In line with expectations, CEZ has agreed with the Ministry of Finance on the sale of the 34% stake in CEPS. Both CEZ and the Ministry of Finance declined to provide us with the selling price, which is based on an independent expert valuation and will be paid in five installments (half of the amount will be paid before the end of 2006 and the last installment is due in 2009). Note that, earlier unofficial information suggested that the state reportedly valued the stake at CZK 6.5bn. We had expected the price to correspond to the price received by CEZ for the 66% stake sold last year (CZK 15.2bn), possibly adjusted for the majority premium. This would imply a slightly higher price than the amount of CZK6.5bn. Nevertheless, we do not see the difference as being significant.
Tomáš Gatěk