CEZ Urges Prague to Choose It as Partner in Natural Gas Provider

CEZ AS, the largest Czech producer of electricity, is urging Prague city officials to pick it as its partner in utility Prazska Plynarenska AS that supplies natural gas to the Czech capital.

CEZ wants to buy a 49 percent stake in Prazska Plynarenska from EON SE for 2.1 billion koruna ($105 million) and take control of the gas utility’s trading operations by Dec. 20, CEZ spokesman Martin Schreier said in an e-mail today. EON is selling the utility as part of its asset disposal plan.

The city, which controls the pipeline system, has the right to choose the other shareholder. Czech Energeticky a Prumyslovy Holding AS, billionaire Karel Komarek’s KKCG and German utility EnBW Energie Baden-Wuerttemberg AG are also vying for the stake.

“CEZ is interested in the natural gas trading and sales units,” Schreier said. “The distribution part of the company such as all the infrastructure will remain in the hands of the City of Prague.”

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