CEZ: Tenders for CEPS and Slovenske elektrarne

The Cabinet is scheduled to approve its bid for CEZ's 34% stake in CEPS, the domestic transmission grid operator, at CZK 6.5bn today. Note that CEZ is obliged to sell the stake by fall 2004 due to the Anti-Monopoly Office's ruling after CEZ acquired eight regional distributors last year. Should CEZ not sell the stake in a planned public tender, it could then accept the state's bid, thus representing the minimum selling price. Note that CEZ received CZK 15.2bn on the 66% stake sold last year including a possible majority premium.

Separately, CEZ is expected to submit today its bid for the state's 66% stake in Slovenske elektrarne, the dominant Slovak power producer. Note that the Slovak Cabinet will give preference to those bidders interested in nuclear assets. So far, three of five bidders (including CEZ) are interested in both the nuclear and non-nuclear parts of SE (the Italian Enel and the Russian RAO UES are reportedly the other two, while the Austrian Verbund and the German E.ON are only interested in non-nuclear assets). Today, a list of bidders should be disclosed; the privatization advisor (PWC) should submit its recommendation to the Slovak government by August 12.

Jan Hajek