CEZ - planned merger of CEZ and distributors will take place on 1 April

Komentář
Investiční bankovnictví KB

      The long awaited merger of CEZ and distribution companies will be completed on 1 April. CEZ will receive government’s stakes in eight distribution companies and CEZ will sell the government a 66% stake in CEPS. CEZ should pay first installment of CZK 2bn already on 1 April. CEZ has to offer buyout of minority shareholders only in case of Stredoceska energeticka and Zapadoceska energeticka with total costs estimated in wide range of CZK 0.7-7.5bn depending on how many shareholders will accept the offer. CEZ did not ruled out voluntary buyout offer in case of the other distribution companies. Management of CEZ said that it is opened to negotiations with the European utilities, which hold stakes in the distributors on consolidation of their stakes. It could include swaps of their stakes.

       Consolidated results for the first half of 2002 will already include financial statements of the distributors, but only a 34% stake in CEPS. Moreover, already the 1H2002 results will be inflated by profit of sale of a 66% stake in CEPS of around CZK 7.5bn. Accounting profit on sale of CEPS will compensate for the expected drop in profitability after commercial launch of second reactor of Temelin (increased depreciation and interest expenses).

       We consider this as positive news for CEZ, as significant uncertainty disappeared, which should open a room for share price improvement.

      

      Tyto zprávy pro vás vytváří Investiční bankovnictví KB.