Main points of a CEZ presentation at a press conference held on March 27, 2003 at 11.00 Concerning the integration of distribution companies into the CEZ group
Main points of a CEZ presentation at a press conference held on March 27, 2003 at 11.00 Concerning the integration of distribution companies into the CEZ group
It is very likely that CEZ will not address the Highest Court concerning the decision of the Economic Competition Protection Authority (UOHS). The final conclusion on this matter is to be adopted at the next meeting of the Board of Directors. CEZ is prepared to start negotiations with significant shareholders of the regional power companies (E.ON and RWE), discussing possible mutual consolidation of their assets.Competent sections of the company will discuss possible steps towards reaching compliance with the decision of UOHS and implement them with the aim of increasing the value of the company shares.CEZ will start the preparation for selling its shares in regional power companies according to the conditions set by UOHS.We are in one mind as to which of our distribution companies is to be sold and our opinion in this matter is based on a number of legal and economic analyses, both internal and external. However, the final decision depends on the executive bodies of the company (Board of Directors, Supervisory Board).Legal analyses suggest that Zapadoceska energetika (West Bohemian Power Company) and Stredoceska energetika (Central Bohemian Power Company) are the only distributors eligible for compulsory purchase.The deadlines for carrying out the transaction were set by the contracts concluded in summer 2002. At this stage, CEZ is unable to influence the responsibilities resulting from the newly established structure. The deadline for settling the matter was appointed by a decision of UOHS, delivered on March 20, 2003. This means that the shares will be transferred on April 1, 2003 (and will become the property of CEZ). The ruling of the constitutional court should be publicised the same day. The incorporation of distribution companies (REAS) into the CEZ Group does not mean that they have been swallowed. REAS have and will continue to have other strong shareholders in addition to CEZ. REAS shall retain their legal autonomy. The entrepreneurial activities of REAS will be governed by legislation aimed at protecting minor shareholders.