ČEZ - Industrial minister does not favor extraordinary dividend

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Investiční bankovnictví KB

      Industrial minister Milan Urban said in an interview for daily Lidove noviny that he does not favor payment extraordinary dividend by CEZ to support government budget. Industrial minister prefers investments into development or expansion into Slovakia or Bulgaria. He also spoke about possible reduction of government’s stake from 67% to 51%. He said that the sale could be completed during 2004 probably using placement on foreign markets. Nevertheless, the industrial minister said that this is predominantly idea of finance ministry.

       We expect the industrial ministry announcement is related to possibility of payment an extraordinary dividend and not to regular dividend policy. In our opinion, CEZ could pay dividends in range CZK 8-9 per share. If the government decides to reduce its stake in CEZ through capital markets, we expect is would be successful given the experience with recent similar transactions – sale of TelSource’s stake in Cesky Telecom or sale of Telecom Italia’s stake in Telecom Austria.

      Tyto zprávy pro vás vytváří Investiční bankovnictví KB.