Very few minority shareholders in ZCE, one of two regional power distributors where CEZ recently made obligatory buyout offers following its acquisition of majority stakes, actually participated in the offer (source: the Czech Press Agency).
Although CEZ did not manage to increase its 50.26% stake via the buyout offer (the price offered ZCE shareholders was close to the price at which CEZ gained the majority stake), it will eventually increase its stake since it has agreed with E.ON of Germany on a swap of a 42% stake in ZCE for CEZ’s 34% stake in JCE, another regional distributor.
Separately, the Czech parliament has approved an amendment to the energy law, which should slightly speed-up sector liberalization; as of next year, all companies with electricity meters will be given choice of supplier. The introduction of choice of supplier for households remains scheduled for 2006.
Slightly positive, since CEZ will gain access to more final clients, but the company mostly targets large-sized consumers, which already have choice of supplier.
Jiri Soustruznik