(Jiří Soustružník) A National Property Fund spokeswoman told Patria that a privatization condition proposal that would commit future owners of Czech energy and chemicals groups to hold privatized stakes for a minimum of 10 years will be submitted to the Cabinet for approval. Since Prime Minister Milos Zeman said that this additional privatization condition would indeed be applied, we expect approval by the Cabinet. It is not certain whether the proposal will be on the agenda at the next regular Cabinet meeting (Monday, October 15), or at a later one.
This additional privatization condition was expected in the CEZ privatization, and therefore it should not have a negative impact on CEZ stock.
Unipetrol’s privatization is likely to become complicated, though, should the condition be really applied, since most of the bidders intend to form consortiums and split Unipetrol after privatization. Negative for Unipetrol stock.