Czech nationalisation of ČEZ takes shape as management proposes key takeover step

The management of energy group ČEZ has proposed setting up a new subsidiary into which it wants to carve out energy sales and distribution, trading and energy services from the current structure. This is the first step towards the planned nationalisation of the company. The company would retain a 51 percent stake in the new subsidiary and offer the remaining part to investors. The proposal will be decided by the company’s June general meeting. This follows from information published on ČEZ’s website. The proceeds from the sale of the stake in the subsidiary should then help facilitate the buyout of ČEZ’s minority shareholders.

The state currently holds around 70 percent of ČEZ shares, with the remainder owned by minority shareholders. Nationalising the company is one of the declared goals of the current government, and buying out minority shareholders’ stakes would make the state the company’s sole owner. Prime Minister Andrej Babiš (ANO) recently indicated that the cabinet wants to complete the entire process of taking full control of ČEZ by the end of the current electoral term in 2029 at the latest.