Govt to take steps to gain full control of CEZ - minister

Prague, Feb 20 (CTK) - The government will take steps to gain full control of the semi-state energy group CEZ, Industry and Trade Minister Karel Havlicek said during a presentation of the cabinet's economic strategy today, without specifying any concrete measures.

The state is expected to buy out shares from minority shareholders. Havlicek said earlier the government would begin preparatory steps as early as this year.

The state holds approximately 70 percent of shares in CEZ through the Finance Ministry, with the remainder owned by minority shareholders. By purchasing the minority shareholders' stake, the state would become the sole owner.

Havlicek confirmed today the government is still planning measures to gain 100 percent control over production in the CEZ Group. The plan is part of the policy statement of the current government coalition formed by the ANO, SPD, and Motorists.

Havlicek did not specify any concrete steps or their timetable today, arguing that this information would affect the share price. Back in January, Havlicek said the government had a plan ready for the nationalisation of CEZ and would not delay it. According to him, the whole process should start this year and take about two and a half years.

According to Havlicek's January statement, the total price will depend on the share price at that time. In the past, however, he admitted that nationalisation could cost approximately CZK250bn.

"The main reason is not energy prices, but the fact that this will free up CEZ's hands for further investments. The state already controls all key investments," Havlicek said today. He wants to complete the entire process during the current term of office.

The current opposition has long criticised the plan to nationalise CEZ. According to them, it will have a significant impact on the company's debt and the state budget, as CEZ would not pay dividends from its profits. "It doesn't make economic sense," said former industry and trade minister Lukas Vlcek.

Radim Dohnal, an analyst at Capitalinked.com, also takes a critical view of the plan. "Despite lower electricity prices, the state will be buying votes, discouraging other electricity producers from investing in new sources or even renovating old ones. This will discourage all consumers from saving, and so we will continue to suffer from a shortage of fossil fuels in Europe," said Dohnal.

He also mentioned the negative impact on the Prague Stock Exchange (BCPP), which, without such a large company, will become less attractive to new issuers, in his opinion.

CEZ earned CZK21.5bn in the first three quarters of last year, with the group's net profit falling by about 6.5 percent year-on-year. The company is expected to publish its results for the whole of 2025 in March.

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