CEZ has decided to accept the state's bid for CEZ's 34% stake in CEPS, the domestic transmission grid operator, as no investor submitted a bid in the recent public tender. The state reportedly values the stake at CZK 6.5bn, but further adjustments are possible subject to a new appraisal and negotiations with CEZ. The amount should be paid in several installments over 2005-08. Note that CEZ is obliged to sell the stake by fall 2004 due to an Anti-Monopoly Office ruling after CEZ acquired eight regional distributors last year.
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 offered by the state. Nevertheless, we do not see the difference as being significant.
Jan Hajek