EGM of Severoceska energetika (SCE), regional electricity distribution company, decided yesterday that CEZ will buy-out minorities in company. CEZ already owns 96.14¬% stake in SCE and it will propose CZK 3,575/share for the remaining stake.
Our view:
This step has been expected since CEZ acquired 39% stake from Segfield Investments in April 2006 and increased its stake in SCE from 57% to current level of 96.14%. Given that all remaining shares are bought-out, the transaction should amount CZK 297m. Taking full control of SCE is for CEZ obvious due to its ongoing Vision 2008 restructuring program. We don’t expect this news to have any significant impact on today’s trading.