The Czech government is reviewing several options for buying out energy group CEZ, in what could become one of the largest restructurings of the national electricity sector. Minister of Industry Karel Havlicek stated that the preferred scenario would involve acquiring 100% of the group’s generation assets while keeping distribution and trading operations listed on the stock exchange.
The state currently holds 70% of CEZ, while minority shareholders own 30%. A full acquisition of the remaining shares would exceed CZK200bn ($9.6bn) at the current share price. The group, valued at $33bn, plays a central role in the country’s energy security. The minister clarified that no firm timeline has been set at this stage.
A multi-phase operation under consideration
The minister mentioned the possibility of re-listing part of the assets after the acquisition, in order to ease the financial burden of the transaction and retain some flexibility on the markets. He emphasised that all options being studied must ensure fair conditions for minority shareholders.
Once initiated, the operation could take up to two years. “This would be a step towards energy security, with all generation under state control, as is the case in France,” Havlicek said. He also noted that the government is working in parallel on reducing energy prices for consumers and strengthening domestic capacity mechanisms.
Financial impact and criticism of the plan
The prospect of a full CEZ buyout has drawn concerns, with some warning that the project could deprive the state of regular dividends and increase the group’s financial liabilities. The minister defended the economic viability of the plan, pointing out that CEZ generates between CZK130bn and CZK140bn in annual earnings before interest, tax, depreciation and amortisation (EBITDA), which would allow it to absorb the financial impact without compromising investment projects.
The final decision will depend on future fiscal and political trade-offs, but the government appears determined to strengthen its control over critical infrastructure. “This is a massive transaction that would give the state greater room to manoeuvre,” Havlicek concluded.
