Finance
Czech Government Backs Cez Spin-Off as First Step to State Takeover, Minister Says
Published by Global Banking & Finance Review®
Posted on April 24, 2026
2 min readLast updated: April 24, 2026
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The Czech government, owning ~70% of CEZ, supports a plan to spin off CEZ’s non‑production assets—such as distribution and trading—and sell up to 49% to investors to fund a buyout of minority shareholders in the generation business without straining public finances or CEZ’s liquidity.
Czech Government Backs CEZ Spin-Off as Key Step to Full State Takeover
Government Strategy and CEZ Spin-Off Details
By Jan Lopatka
Government Endorsement of CEZ's Plan
PRAGUE, April 24 (Reuters) - The Czech government welcomes a plan by 70% state-owned electricity producer CEZ to spin off its distribution and other non-production assets and offer a minority stake in them to investors, Industry and Trade Minister Karel Havlicek said on Friday.
Objectives of the Spin-Off
Havlicek told reporters the plan would generate cash for the government's plan to subsequently take over full ownership of CEZ's production business through a buyout of minority shareholders that would not harm their rights, burden the state budget or significantly hurt CEZ's cash flow.
CEZ's Market Position
CEZ is one of Europe's largest electricity utilities with a market capitalisation of $31 billion.
Government's Takeover Priorities
The government, which took office late last year, has made taking control of at least its production operations a priority.
Minister's Statement on the Decision
"Yesterday's decision corresponds to our aim. We welcome it, and without doubt it is the first step for it to be achieved," Havlicek told reporters.
Next Steps and Shareholder Involvement
The plan will be discussed at CEZ's annual meeting on June 1 and, with government support, should be approved.
Minority Stake and Asset Details
Havlicek said he expected the utility to float the minority - CEZ put it at up to 49% - of the spun-off assets including customer sales, trading and power distribution on the Prague Stock Exchange, keeping a large piece of CEZ listed while the parent firm would eventually be taken off the market.
Alternative Options and Investor Interest
CEZ said on Thursday a direct sale was also an alternative, while spinning off the mostly regulated assets, such as power and gas distribution, would raise interest from a broader range of investors.
Minority Shareholder Considerations
Havlicek said the government was not yet discussing the planned buyout with CEZ's minority shareholders but said they would be given fair treatment.
(Reporting by Jan Lopatka; Editing by Joe Bavier)
Key Takeaways
- •The spin‑off of regulated, non‑production assets aims to raise capital via an IPO or direct sale, appealing to infrastructure‑focused investors and helping fund a government-led takeover of CEZ’s generation arm (globalbankingandfinance.com).
- •The plan, endorsed by Industry Minister Karel Havlíček, will be tabled at CEZ’s annual general meeting on June 1, marking the first formal step toward full state control of energy production (globalbankingandfinance.com).
- •CEZ’s market cap is around US $31 billion; the non‑production segment contributed CZK 53 billion (~US $2.5 billion) or 38 % of EBITDA in 2025, indicating its significance and investor appeal (globalbankingandfinance.com)
References
Frequently Asked Questions about Czech government backs CEZ spin-off as first step to state takeover, minister says
1What is the Czech government's plan regarding CEZ?
The Czech government supports CEZ's plan to spin off its non-production assets and aims to eventually take over full ownership of CEZ's production business.
2What assets will CEZ spin off in the process?
CEZ will spin off assets including customer sales, trading, and power distribution, offering up to 49% of these to investors.
3How will the rights of minority shareholders be protected?
The government states that the buyout of minority shareholders will not harm their rights, nor burden the state budget or significantly impact CEZ's cash flow.
4Where will the minority stake in spun-off CEZ assets be offered?
The minority stake is expected to be floated on the Prague Stock Exchange.
5Has the Czech government started discussions with CEZ minority shareholders?
The government has not yet begun discussions with CEZ's minority shareholders but assures they will be treated fairly.
