The Czech energy-sector regulator (ERU) said that CEPS, which operates the national transmission grid (100% owned by CEZ, 66% of which should be sold to the state), should not be owned by CEZ. The regulator’s opinion is not binding for the state and we expect CEZ will keep a 34% stake in CEPS. Neutral.
The Prague Business Journal reports today that the situation is still not clear as to whether CEZ will have to offer buy-out to the minority shareholders of the to-be-acquired regional distributors (according to the government’s sectror restructuring plan, CEZ will buy the state’s stakes in the distributors). We see the key issue in this regard to be the purchase prices, which are yet to be determined; a possible minority buy-out (unlikely we believe) for a fair price should not affect CEZ’s stock price.
(Jiri Soustruznik)