The Cabinet yesterday approved transaction prices related to an assets swap in the government’s energy-sector restructuring plan. A government spokesman said that the state’s stakes in eight regional distributors, to be sold to CEZ, were evaluated at CZK 32 bil. CEZ, in turn, will sell a 66% stake of its 100%-owned subsidiary CEPS, the transmission-grid operator, to the state for CZK 15 bil., and will pay approximately an additional CZK 17 bil. for the state’s stakes in the distributors in annual installments by June 2006. We estimate that this transaction shall boost CEZ’s value by at least CZK 10 bil. (by CZK 17 per share). The approval is positive for CEZ and has been expected.
It seems that the Anti-Monopoly Office is the last possible hurdle to the implementation of the government plan, though we believe the proposal will proceed unchallenged by regulators.
(Jan Hajek)