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Media Nuclear Power Plant news

20. 10. 2005

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Press release: Severočeské doly has become a member of the CEZ Group

Today representatives of the National Property Fund of the Czech Republic (FNM CR) and CEZ Power Company have signed Agreement about a purchase and sale of shares, under which CEZ is buying a 55,792 % share in Severoceske doly owned by FNM CR. By this step, CEZ will increase its present 37.31 % share in the company to 93.102 %. The purchase price amounts to 9,046m CZK.

This step will complete the Resolution no. 1259 of the government of the Czech Republic from September 29, 2005 about a privatization of the state capital participation in Severoceske doly a.s., namely by a direct sale to CEZ, a.s. - a chosen acquirer without a public tender.

„This is one of the most important investments of CEZ which gives us certainty for the future operation of the new or completely renewed power plants. Now we can fully launch our renewal program of a part of coal resources, where CEZ is going to invest over 100bn CZK in the next years. The amount, invested mainly in the North-Bohemian region, will be one of the largest investments ever realized in the CzechRepublic. The investment will also significantly support employment in the region and will bring opportunity for a number of local firms,“ said Martin Roman, Chairman of the Board and CEO of CEZ.

CEZ and Severoceske doly are mutually very dependent – 80 % of SD´s production go to CEZ and cover 60 % of CEZ´s needs. On this account, the merger of both firms is the only logical solution. Our competitors use identical organization.

„The sale of Severoceske doly has topped the privatization of soft-coal companies in the CzechRepublic. The National Property Fund of the Czech Republic highly appreciates the fact that Severoceske doly have gained a strong strategic partner who will secure not only its economic development, but also meeting obligations defined in the Agreement about a purchase and sale of shares“ said Jan Skurek, Vice-chairman of Executive Committee of FNM CR.

                                                              
Ladislav Kříž
ČEZ, a. s., Spokesman