Bloomberg News

CEZ May Spin Off, Sell Stake in Renewable Energy Assets in 2012

January 09, 2012

Jan. 6 (Bloomberg) -- CEZ AS, the Czech Republic’s largest power producer, may spin off its renewable energy operations and sell a minority stake to investors this year, raising money as the company seeks to expand into Poland, Romania and Germany.

A final decision on the sale, which may be to institutional investors such as insurance companies and pension funds or via a stock-exchange offering, will probably be made during the first quarter, Ladislav Kriz, a CEZ spokesman, said today by phone.

He declined to indicate the probable value of the assets, which include solar plants and wind farms in the Czech Republic.

“CEZ will likely use the raised cash to further invest into the renewable energy segment abroad, for example into Polish windfarms,” Marek Hatlapatka, an analyst at Cyrrus AS, said in a note today. “We expect keen interest from investors despite the inherent risk of uncertain regulatory environment.”

CEZ is building a 600-megawatt wind farm in Romania and studying Poland and Germany. The Prague-based utility plans to build as much as 2,000 megawatts of wind farms in Poland by 2015, Chief Executive Officer Daniel Benes said in November.

The company was little changed at 778 koruna by 10:44 a.m. in Prague trading, erasing an earlier gain of 1.1 percent.

--Editor: Tony Barrett, Ana Monteiro

To contact the reporter on this story: Ladka Bauerova in Prague at lbauerova@bloomberg.net

To contact the editor responsible for this story: Will Kennedy at wkennedy3@bloomberg.net


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