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CEZ power company has become a majority owner of Škoda Praha

21. 1. 2004

Others

CEZ power company has become a majority owner of Škoda Praha

Ever since last week, Škoda Praha has had a new majority shareholder - the CEZ power company. This resulted from the decision of the Prague Municipal Court, passed on 14 January, which officially sanctioned the pertinent changes in the companies register that had already been approved by the company shareholders.

This acquisition has increased the CEZ equity in Škoda Praha from the previously held 29.8 % up to 68.88 %. The equity held by the Czech National Property Fund has shrunk from 54.77 % to 24.28 %. The acquisition has resulted from a settlement agreement between the two parties, which was signed last June. The agreement settles disputable rights and duties between CEZ and Škoda Praha, ensuing from a contract for the construction of the Temelin nuclear power plant. Both contractual parties have come to an agreement - Škoda Praha has undertaken to withdraw the lawsuits concerning its disputable claims, while CEZ has undertaken to capitalise its claim in the amount of 700 million CZK, by investing the sum into the basic capital of Škoda Praha.

This settlement agreement was the fastest available solution to our relationship, even though our strategic plans did not include a majority ownership of an engineering company. Our chief focus is still electricity production. I expect we will remain in the position of a majority shareholder of Škoda Praha for several years. During these years, we will certainly behave like a responsible owner, looking for potential future directions the company may take, said Petr VoboĹ™il, the CEZ Chairman and interim CEO, in connection with this issue. 

JiĹ™i Hurych, the Škoda Praha Chairman and CEO, added the following commentary: This has in fact been the final stage of a process aimed at restructuring Škoda Praha, which had been approved by the general assembly of the company. In the immediate future we can focus solely on developing our business activities and positioning Škoda Praha on global markets. We want to make full use of the natural role of our company on both the Czech and Slovak markets and we hope we have chances to succeed even in international competition.

 

Petra Kuvikova Ladislav Kriz
press officer press officer
ŠKODA PRAHA, a.s. CEZ, a. s.