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Czech lower house turns down legislative modification that would reduce CEZ split, shares up

Czech lower house legislators on Wednesday declined, as anticipated, a contested passage in a. bill on company transformations that critics said would make it. easier for the federal government to spin off or take control of parts of. power energy CEZ.

CTK news firm reported that legislators deleted the passage. before authorizing the federal government's changed bill, which will now. head to the upper house Senate.

The government last year proposed lowering the quorum required. to concur public company divides where stock in successor companies. would be distributed unevenly between investors.

The suggested change, part of a broader costs that otherwise. handle shifting EU legislation, had drawn investor. criticism and hit shares in CEZ, which is 70% state-owned.

The shares are down around 28% since the proposition was first. presented in May last year. They were up 2% on Wednesday,. leading the Prague market greater.

The objected to modifications would have made it easier for the. government to completely take over parts of energy powerhouse CEZ, a. strategy under consideration given that Russia's full-scale invasion of. Ukraine in 2022 caused a spike in energy costs.

In February, a parliamentary committee recommended dropping. the contested passage, signalling that the modification would likely. not be approved by the full house.

Financing Minister Zbynek Stanjura said previously on Wednesday. there was no upgrade on government considerations on whether to. restructure CEZ or change its ownership.

(source: Reuters)