Back
CEZ Group
...
Media Press releases
Signed contract between CEZ Power Company as a seller and The Ministry of Labour and Social Issues as a buyer

20. 8. 2002

Others

Signed contract between CEZ Power Company as a seller and The Ministry of Labour and Social Issues as a buyer

Yesterday, August 19, saw the conclusion of a contract between CEZ Power Company as a seller and the Czech Republic (The Ministry of Labour and Social Issues) as a buyer. The contract covered the sale of 15 % equity in CEPS, a daughter company of CEZ.

  

Yesterday, August 19, saw the conclusion of a contract between CEZ Power Company as a seller and the Czech Republic (The Ministry of Labour and Social Issues) as a buyer. The contract covered the sale of 15 % equity in CEPS, a daughter company of CEZ. On behalf of CEZ, the contract was signed by the Chairman of the Board of Directors and the CEZ CEO, Mr Jaroslav Mil, and a member of the Board of Directors, Mr Ivan Cestr; Mr Zdenek Škromach, the Czech Minister of Labour and Social Issues, signed the contract on behalf of the Czech Republic. Earlier that day, the CEZ Board of Directors had been authorised by the company Supervisory Board to sell the above-mentioned equity.

Based on governmental resolutions passed on March 11, May 6 and June 12 this year, and in compliance with the resolution of a CEZ general assembly held on July 11, the Board discussed the transaction that consisted of buying certain equity in regional electricity distribution companies and selling certain equity in CEPS to the OSINEK company and to the Czech Ministry of Labour and Social Issues. The purchase and sale contract between CEZ and OSINEK was signed on June 28, the purchase and sale contract between the Czech Consolidation Agency, as the contractual party selling a part of equity in ZCE (the West Bohemian Power Company) and CEZ, as the contractual party buying this equity, was signed on July 22. The entire transaction was completed by the contract between CEZ and the Czech Ministry of Labour and Social Issues, which was signed yesterday. The practical implementation of the CEZ and REAS integration process, which has been enabled by the transaction, has to be approved by the Economic Competition Protection Authority.

The subject of the contract is 15% equity in a daughter company, which amounts to almost 3.5 billion CZK. The acquisition cost was determined according to the original expert opinion. The contract states that when the transaction has been carried out, the company auditor will audit CEPS economic performance over the period from the conclusion of the equity purchase contract until the end of the transaction and a newly appointed expert will devise another expert opinion. If the price determined by the new expert opinion differs from the acquisition price, the acquisition price will be adjusted accordingly.

 

CEZ plans to use the revenue generated by selling the CEPS shares for financing its purchase of equity in regional distribution companies.

 

Ladislav Kriz

CEZ Press Officer