Czech Government Sells Its Share In CEZ

Minister of Finance Miroslav Kalousek announced selling 7 percent of share in electric energy producer to cover the loss in the budget.

He also added that state is planning to choose an agent who will sell the share in capital markets this year, not wanting to give more details about it. Czech government currently holds 67.7 percent of shares in the Czech Energetic Company (CEZ), but after the announced share sele it will lose two-thirds of majority in the company.

Former reports are showing CEZ itself is considering purchasing the share, this fast-growing and profitable energetic giant whish disposes with huge amounts of capital.

Incomes in the amount of at least 31 billion krunas that Czech government is trying to realise by selling the share will be spent on yet approved plans for construction and reparation of roads.

Analysts are criticising this move

Analysts are criticising the government because of spending money for patching the budget instead of its investment in retirement reform.

-We will waste this money. By selling the share we are financing our incapability to spare-  the Raiffeisenbanka analyst Ales Michl said.

Selling the shares was also criticised because of worries that  Russia could in that way enter the strategic Czech energetic company.

-That transaction would not influence energetic security for sure- said Czech Trade and Industry Minister Martin Riman, adding that no individual investor would buy the share of 7 percent.