A CEZ EGM scheduled for today is to vote on the Czech government’s energy-sector restructuring plan. CEZ is to buy the state's stakes in eight regional distributors for CZK 32 bil.; in turn, it will sell a 66% stake of CEPS, the transmission-grid operator, to the state for CZK 15 bil., and will pay approximately an additional CZK 17 bil. to the state by June 2006 in annual installments. We estimate that this transaction should boost CEZ's value by at least CZK 10 bil. (by CZK 17per share). The EGM is expected to approve the transaction.
Separately, CEZ has announced a press conference on the energy sector-restructuring plan for this morning; new information is not expected, though.
(Jan Hajek)