CEZ has entered the privatization tender for the state´s stakes in SD and Sokolovska uhelna

Following recent media reports that CEZ has entered the privatization tender for the state’s 55% stake in Severoceske doly (SD), a domestic coal-mining company, CEZ officially announced yesterday that it is interested in acquiring the state’s stake in both to-be privatized domestic coal-mining companies, SD and Sokolovska uhelna.

Separately, CEZ increased its stake in VCE, a domestic regional energy distributor, to 98.8%, following its recent buyout offer to minority shareholders, the Czech Press Agency reported yesterday.

Also separately, Gazprom and RAO Unified Energy System of Russia announced that they are potentially interested in the sale of a minority stake in Slovenske elektrarne, Slovak power producer (source: Czech Press Agency). CEZ is bidding for the 49% stake offered by the Slovak state in SE, but the news above is more important because the Russian companies have stated that they are interested in the central European region mostly for export reasons (SE has no distribution assets, though). As indicated in our latest report on CEZ, dated October 13, 2003, electricity exports from eastern Europe is one of the main medium-term factors that could significantly affect the regional supply/demand balance.

Jiří Soustružník