The Czech daily HN reports that, “according to a confident documents that will be discussed by the Cabinet,” CEZ should receive CZK 14 bil. for its 66% CEPS stake to be sold to the state, and it would pay CZK 31 bil. for the state’s stakes in eight regional power distributors (toward which CZK 15 bil. would be paid this year by transferring the 66% CEPS stake and an old headquarters building to the state, and then CZK 4 bil. cash per year for four years).
We have estimated the value of the 66% stake in CEPS at CZK 14 bil., and the value of the stakes in the distributors at approx. CZK 40 bil.. Should the reported transaction prices prove accurate, the transaction would boost CEZ’s value by approx. CZK 10 bil. (CZK 17 per share). Nevertheless, a valuation of the relevant stakes by an independent expert is ongoing, so the report should be taken with some caution.
(Jiri Soustruznik)