Back
CEZ Hungary News CEZ Group CEZ has already bougth more than 2 per cent of its treasury stocks

2007. 6. 22.

CEZ has already bougth more than 2 per cent of its treasury stocks

CEZ Power Company yesterday exceeded the 2 per cent limit within its ordinary share buyback. Until today, CEZ has bought back 11,988,574 of its shares, which represents 2.02 % of the total volume. This number of shares was bought back within 38 trading days. CEZ has been buying back its shares according to the decision of the general meeting on April 23, 2007. which, among others, passed a resolution to acquire up to 10 per cent of the company´s treasury stocks. The buy back started on April 30, 2007.

The general meeting approved an acquisition of the company´s own ordinary shares in the volume not exceeding 59,221,084 pieces by CEZ starting April 23, 2007.

The lowest price CEZ can acquire its shares at is 300 CZK per share. The highest price CEZ can acquire its shares at is 2,000 CZK per share. The period of validity of the resolution of the general meeting, as well as the period in which CEZ is entitled to acquire its shares, is 18 months from the date of the general meeting. CEZ has charged the two largest Czech brokers - WOOD & Company Financial Services, a.s. and Patria Finance, a.s. to carry out the purchases. The buyback of shares is realized on regulated markets, where the shares are quoted (Prague, Warsaw), and especially on an anonymous market to avoid discrimination of the company´s shareholders.

The reason for this buyback of shares is the present non-efficient structure of capital and unsuitable debt-to-equity capital ratio of the company. Timing of the buyback was also influenced by the Czech government´s decision from March 19, 2007, to sell a part of CEZ´s shares through the capital market. The Czech government´s intention which was made public offered an interesting opportunity to carry out the buyback of CEZ´s shares in a way that is beneficial to companies and all shareholders as well.

Eva Novakova, Press Officer, CEZ, a. s.