HN daily featured information about intentions of main political parties to privatize CEZ in next political term. It is not only ODS (the right wing Civil Democrats) but also the Greens and KDU-CSL (Cristian Democrats) who favour CEZ's privatization and consequently to use the proceeds for needed pension reforms. ODS claims privatization of the whole 67% state's stake in CEZ may be completed much earlier than in the next four years as proclaimed before.
Although this might be a political rhetoric ahead of this week elections (June 2 and 3) we see news on possible privatization of CEZ as positive given the increased interest of generation assets in the CEE&SEE region in the light of rising electricity demand and expected closure of capacities. Following the recent political turmoil surrounding the leading left wing CSSD (Social Democrats), the chances of the right wing ODS to win the elections are increasing. We reiterate our Buy recommendation.