CEZ will try to challenge the AMO's decision obliging it to sell its majority stake in Severoceska energetika

CEZ reiterated on Friday that it will try to challenge the Anti-Monopoly Office's decision that is obliging CEZ to sell its majority stake in Severoceska energetika, a regional electricity distributor. CEZ also has to sell its minority stakes in Prazska energetika, another regional distributor, and in CEPS, the transmission grid operator, this year. Note that the AMO's conditions on the sale of CEPS are rather strict (e.g., the buyer must not be involved in the energy sector in the CR), which significantly narrows the range of potential bidders and may thus negatively affect the selling price.

Separately, Stredoceska energeticka, an electricity distributor 98%-owned by CEZ, reported a 2003 CAS net profit of CZK 396m (-38% y-o-y) and Zapadoceska energetika (99%-owned by CEZ) reported a net profit of CZK 367m (-55% y-o-y).

Jitka Oppitzová, Patria Finance