CEZ has said that a second independent valuation of the 66% stake in CEPS (the transmission grid operator) which was transferred to the state on April 1 as part of domestic energy-sector restructuring has yielded an appraisal of CZK 15.22 bil.
Recall the previous appraisal was CZK 15.04 bil., which was perceived as too high by the state, which initiated the second valuation. The development is certainly a positive surprise for CEZ shareholders, as the second valuation basically confirms the first.
Separately, CEZ announced that it made obligatory buy-out offers to minority shareholders in two regional distributors that it acquired on April 1, ZCE and STE. The buy-out price offered at STE is CZK 2,033 per share, which is 2.7% higher than the acquisition price. At ZCE, the buy-out offer is CZK 6,179 per share, close to the acquisition price (CZK 6,191).
It was expected that the buy-out offers would be set at close to the acquisition prices; the buyouts must be approved by the Czech Securities and Exchange Commission.
CEZ could pay in total CZK 7.8 bil for the minority shares in the two distributors, we estimate. 35% of STE is held by RWE of Germany, while 42% of ZCE is held by the German E.ON; both could opt for stakes swaps for CEZ-held minority stakes in domestic distributors PRE and JCE/JME.
Separately, the Czech Press Agency reports that the prime minister, Vladimir Spidla, will meet Industry Minister Milan Urban this week to discuss state energy policy. Several energy-policy scenarios are on the table, which differ, for instance, as regards plans for nuclear-energy development/reduction, coal-power-plant development, etc. We also believe that the plan will address the timing of CEZ’s forthcoming privatization.
Jiří Soustružník