CEZ receives several binding offers for its Polish coal plants

Prague, Aug 8 (CTK) - Energy group CEZ has received several binding offers to buy its production assets in Poland, where it has the Skawina and Chorzow coal-fired power plants, and it is currently negotiating with the bidders, CEZ CFO Martin Novak told CTK today, adding that the outcome should be clear by the end of the year.

CEZ has been looking to divest its coal assets in Poland for some time in line with its strategy to reduce coal production in the future. In the past, CEZ has tried to sell Polish power plants but stopped the transaction two years ago due to unattractive offers.

In the future, CEZ will probably also want to sell its remaining assets in Turkey, Novak said. At the end of last year, the company completed the sale of its 50 percent stake in the Turkish company Akcez Enerji to the Turkish investor Torunlar Group. At present, CEZ still holds a stake in another energy company, Akenerji Elektrik Uretim, which operates several hydropower plants in Turkey, the Ayyildiz wind park and the Egemer steam power plant in eastern Turkey.

Novak also said that CEZ should finalise its takeover of GasNet and integrate it into its portfolio in late August or early September. CEZ does not plan any significant changes in the operation of the gas company, he said.

CEZ bought GasNet, the largest gas distributor in Czechia, from Macquarie Asset Management for EUR846.5m (over Kc21.3bn) earlier this year. The transaction is still under review by the European Commission and the Czech Industry and Trade Ministry, with confirmation expected in the coming weeks.

GasNet provides natural gas supplies to households and companies throughout the Czech Republic, except Prague and the South Bohemia Region, holding approximately 80 percent of the gas distribution in the Czech Republic.

The acquisition is probably the biggest investment of this year for the semi-state CEZ, which is why Novak described the final takeover of GasNet as an important milestone. According to him, GasNet is a well-functioning company that has many synergies with CEZ.

CEZ will be the majority owner of GasNet with a 55.2 percent stake. Other shareholders in the company are Allianz and Canada's BCI. Negotiations on a possible increase of CEZ's stake are not on the agenda now, Novak said.

In addition, CEZ is currently updating a feasibility study based on which it intends to decide whether to exploit lithium reserves industrially, Novak said. The update mainly examines the impact of moving the lithium processing plant, which, according to current plans, could be located at the power plant in Prunerov, northern Bohemia. The company is expected to have more detailed results by the end of the year, he said.

CEZ is one of the largest energy companies in the Czech Republic. Its majority shareholder is the state, which holds about 70 percent of the shares through the Finance Ministry.

In addition to the Czech Republic, CEZ currently operates in six other countries, namely Slovakia, Germany, France, Poland, Romania and Turkey.

hel/er