The agreement settles the respective disputable rights and obligations of CEZ and SKODA PRAHA, arising from their contract covering the construction of Temelin nuclear power plant. Both contractual parties have agreed that SKODA PRAHA would drop charges concerning its disputable claims. CEZ, on the other hand, undertook to capitalise an outstanding debt of 700 million CZK into the basic capital of SKODA PRAHA over the next months. SKODA PRAHA also undertook to present the other contractual party, within the period of validity of this agreement, with a document certifying the settlement of their dispute with the SKODA Holding Pilsen, concerning their common trademark. CEZ power company still owns 29.8 % equity in SKODA Praha, and its share after the capitalisation should increase to approx. 68.9 %.The two parties also signed a contractual amendment, which specifies the nature and the rules of the future cooperation between the two companies on the premises of Temelin nuclear power plant, including the potential for the further participation of SKODA PRAHA in the work on this construction. It is important that both documents were concluded simultaneously and are therefore interconnected. "The concluded agreement is a reasonable compromise. We have decided to take this step chiefly because we feel responsible and are aware of the fact that SKODA PRAHA would not be able to function effectively without this solution. It was not our strategic intention to become a majority shareholder of this engineering company, as our core business activity is the production of electricity, which is what we can do best. However, while we are the majority owner of SKODA, we are certain to behave responsibly and seek potential courses which the company may take in the future," said CEZ CEO Jaroslav Mil on this occasion Jiri Hurych, the CEO of SKODA PRAHA, said that: "The conclusion of the agreement finally confirmed the successful completion of the 1st phase of the stabilisation of SKODA PRAHA, a company which has gone through a process of restructuring in the past six months. The new management, appointed in December last year, approved the Stabilisation Programme which includes, among other things, a radical change in the business activities of the company. This step helped SKODA PRAHA reinforce its financial and economic management and prepare the basis for the implementation of a long-term strategic plan, which should transform SKODA PRAHA into a modern company that generates an interesting payback for its shareholders."Jana Vargova in her own hand
Ladislav Kriz in his own hand
Press Officer
SKODA PRAHA a.s.
CEZ a.s.