CEZ agreed to sell its 50% stake in Czech heat and electricity company Plzenska Energetika (PLE) to J&T bank as the current stake didn’t allow CEZ to implement all its strategic interests. Besides, CEZ tries to reduce the number of its subsidiaries, which currently stands at 93. Price of the transaction hasn’t been disclosed but our rough estimate of PLE’s value (50% stake) totals some CZK 300m (cEUR 10m) , based on comparative multiples of its peers and 2004 results. Given relatively small value of the transaction we see the news as neutral and reiterate our Hold recommendation.