CEZ takes over nuclear energy equipment producer Skoda JS

Prague, Nov 25 (CTK) - Semi-state energy group CEZ became the owner of nuclear energy equipment producer Skoda JS on Thursday, CEZ spokesman Ladislav Kriz said in a press release today without disclosing the transaction price.

The contract was concluded already in June but it was necessary to wait for the approval of antitrust authorities.

A few years ago, Skoda JS became part of Russian engineering group OMZ controlled by Gazprombank. As a result, the company was at risk of anti-Russian sanctions, which could have a potential impact on ensuring key supplies for CEZ's nuclear power plants.

"Skoda JS is our key supplier and by gaining control of this company we have significantly strengthened our energy security," said Bohdan Zronek, head of CEZ's nuclear energy division.

"A reliable and respected owner will support our position as a qualified and credible company of European dimension. We have a long-standing working relationship with CEZ from our work for the Czech nuclear energy sector and, of course, in many cases personal ties as well," said Skoda JS CEO Frantisek Krcek.

CEZ announced in June that it would become Skoda JS's sole owner to make sure the company would not be affected by anti-Russian sanctions. Until the transaction was finalised, Skoda JS shares were held by financial group WOOD & Company. This ensured that Skoda JS stopped being at risk of sanctions immediately after the contract was signed and not only after the antitrust authorities' approval, Kriz said.

The transaction had to be approved by four antitrust authorities in the Czech Republic, Hungary, Slovakia and Ukraine.

"The antitrust procedure was not easy, especially in view of the state of war in Ukraine. We are pleased to have successfully completed the transaction," Zronek said.

Together with Skoda JS, CEZ will also acquire an additional stake in nuclear research institute UJV Rez. CEZ's stake in UJV Rez will thus rise from 52.46 percent to 69.85 percent. CEZ will also acquire a 100 percent stake in company Middle Estates, which owns the real estate used by Skoda JS.

Skoda JS is one of Europe's leading engineering and manufacturing companies with experience in building and servicing nuclear power plants. The company achieves annual sales of around Kc3.5bn - Kc4bn. Almost half of its sales are generated from exports of equipment and services.

In 2020, the company generated a pre-tax profit of over Kc122m and sales exceeding Kc3.3bn. It employs over 1,000 highly qualified professionals.

CEZ's net profit in 2021 reached Kc9.9bn, 81 percent more yr/yr. Adjusted for extraordinary effects, it fell by 3 percent yr/yr to Kc22.3bn. The majority shareholder of CEZ is the Czech state, which holds about 70 percent of the shares through the Finance Ministry.

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