CEZ will buy 6-7% its own shares from state, that is the most probable way according to HN daily. State plans to get about CZK 30bn to state budget. State stake should be placed on the market and company is ready to buy it, according to Alan Svoboda, CEZ’s head of sales. CEZ also worked up the analysis, which proves that mentioned transaction is not against EU rules. There is also slight possibility that the government will not sell any share because of threat of Russian investors and order ministers to draw money from their reserves to cover the deficit.
Our view:
CEZ’s buyback is not new for the markets, the only thing that is not completly clear is exact timeframe and there are still some speculations about details of placing it on the market. CEZ still has to approve the share buyback on its AGM. There are indications that sale won’t take place before mid-year. We see the news as neutral and don’t see the “no sale” possibility as really viable solution.