Reuters reports that the Czech finance and industry ministries will propose today that CEZ privatization be put off until after the June general election, as has been widely expected. Reuters also reports on the planned CEZ acquisition of regional distributors: An unnamed source said that the final transaction prices will depend on valuations of the companies in question; the transaction is expected to be completed in April or May. According to the newly prepared plan, CEZ would sell a 66% stake in its 100%-owned subsidiary CEPS (the transmission grid operator) to the state National Property Fund, and, subsequently, CEZ would buy NPF-owned stakes in all eight regional distributors (REAS). The 66% CEPS stake would be sold to NPF for CZK 25 bil.–30 bil., and CEZ would pay CZK 50 bil.–60 bil. for the stakes in the REAS. Therefore, CEZ would pay at most CZK 35 bil. above the CEPS selling price, which we see as a fair deal.
Separately, the Czech daily HN reports that CEZ expects to have 7,000 employees by the end of 2002; it had 9,000 employees at year-end 2000.
(Jiri Soustruznik)