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The planned sale of a majority share in SeveroÄŤeska energetika has been approved

6. 5. 2003

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The planned sale of a majority share in SeveroÄŤeska energetika has been approved

The decision of the Economic Competition Protection Authority (ĂšOHS) concerning the CEZ memorandum enabled the transfer of the equities in regional distribution companies and CEPS, a. s., thus launching the establishment of new CEZ Group, as of April 1, 2003.

CEZ thus acquired share in all regional distribution companies (five majorities and one minority). Simultaneously with this transaction, CEZ sold its 66% equity in CEPS company, a transmission network operator.

The second-instance decision of ĂšOHS removed some problematically defined conditions, considerably extended the deadlines for compliance with these conditions (which are regarded as commercially sensitive information and therefore cannot be specified in the public statement), even though their factual content remained unchanged (selling one majority share and all minorities, including the minority in CEPS, a.s.).

After analysing strategic benefits and commercial risks, the company Board of Directors decided to sell its majority share in SeveroÄŤeska energetika, a.s. (North Bohemian Power Utility), and start negotiations about the exchange of minority shares with E.ON and RWE companies.