Industrial ministry proposes CEPS would buy 34% stake CEZ holds in the company

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Investiční bankovnictví KB

      Industrial ministry proposes CEPS would buy 34% stake CEZ holds in the company, which would give CEZ proceed to finance acquisitions in Slovakia and Bulgaria or for dividend payment. CEZ has to sell its 34% stake in CEPS until 1 September based on decision of the Antimonopoly Office. In the previous transaction, CEZ sold its 66% stake in CEPS for CZK 15bn, which implies CZK 7.7bn value of the 34% stake. Industrial minister declined to comment on the expected value of the stake, but the transaction would be discussed with the finance ministry within one month. Moreover, the NPF proposes to increase leverage of CEPS from the current 30% to 70%, which would enable the company to pay dividends of up to CZK 10bn.

       Deadline for sale of 34% stake in CEPS is generally known. Nevertheless, the share price development could be influenced by speculations on higher dividend payment given the fact CEZ is generating strong cash-flow, which is in our opinion is strong enough to finance the planned acquisitions.

      Tyto zprávy pro vás vytváří Investiční bankovnictví KB.