Government is prepared to buy 34% stake in CEPS from CEZ

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Investiční bankovnictví KB

      Spokesman of the Ministry of Finance said the government is prepared to buy 34% stake in CEPS from CEZ in case the company fails to find a buyer in the current tender. The purchase price should be determined based on independent audit, according to the spokesman preliminary estimates are around CZK 6.5bn. The government would pay the price in installments in 2005-2008. Two private investors reportedly showed interest in CEPS. CEZ has to sell its 34% stake in CEPS until 20 September in order to comply with the Antimonopoly Office’s decision.

       Given the fact CEZ values the 34% stake in CEPS at CZK 1.4bn in its books, the company would show pre-tax profit of CZK 5.1bn according to CAS from this transaction. We consider the above mentioned price appropriate given the fact CEZ offers minority stake and is under pressure divest the stake.

      Tyto zprávy pro vás vytváří Investiční bankovnictví KB.