Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Czech Coal Offers $831 Million for CEZ’s Pocerady Plant

Nov. 21 (Bloomberg) -- Czech Coal AS offered 16.5 billion koruna ($831 million) for CEZ AS’s 1,000-megawatt Pocerady coal-fired power plant as it seeks to expand into electricity production.

The actual amount paid will depend on whether carbon credits are included in the sale, Czech Coal spokeswoman Gabriela Benesova said in a telephone interview today from Prague. The deadline for CEZ’s decision is the end of the year.

“Our offer is very attractive,” Benesova said. “It includes several alternatives depending on what kind of package CEZ offers.”

Czech Coal, which is competing for the plant with utility Energeticky a Prumyslovy Holding AS, also wants Pocerady because it is located next to its Vrsany coal mine in the north west of the Czech Republic. CEZ and Czech Coal are in dispute over the price of coal the miner supplies to the utility. The long-term contracts for coal supply to Pocerady expire at the year end and CEZ claims the price Czech Coal is asking to renew the contract is too high.

“Czech Coal has warned it will stop supplying Pocerady after the current contracts run out at the end of the year,” Bohumil Trampota, an analyst at J&T Banka AS in Prague, wrote today in a note. “If CEZ decides not to sell Pocerady, it will have to ramp up production in its own coal mines in Northern Bohemia and transport the coal to the plant.”

CEZ shares were down 1 percent to 671.7 koruna at 12:41 p.m. in Prague. The stock has lost 14.5 percent of its value this year.

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

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.