CEZ, Europe’s biggest listed company with a market value of $US15.7 billion, said it had agreed to sell its Chvaletice plant for 4.12 billion Czech crowns.
The sale of the plant to Litvinovska Uhelna, a Czech Coal subsidiary that is being spun off, ends an EU investigation into CEZ for anti-competitive behaviour.
The company said in a statement that the sale was part of a “decision to put a quick end to the European Commission’s investigation launched in 2009, and to do so by means of a settlement agreement, in which CEZ agreed to sell one of its coal-fired power plants.”
AS part of the terms of the sale, CEZ will also receive 90% of the value of carbon emission allowances granted to the plant on an annual basis. The deal covers 5.3 million tonnes worth of CO2 permits, valued at 412 million crowns at current prices.
The company also announced that it had signed a long-term supply deal with brown coal miner Czech Coal to fuel its Pocerady power plant for the next 30-50 years.
Chairman of the board of directors and chief executive officer of CEZ Daniel Benes said the deal would bring economic stability to both the company and the region.
"The contract may extend beyond 2060; therefore, in the currently very uncertain times for energy market players, the contract brings a major element of stability - not only to both contracting parties, but to the entire region as there will be plenty of jobs available, which will further the local economic development,” he said.
“At the same time, we can now focus on large capital projects aimed to improve the operation of the Pocerady power plant as well as the Vrsany surface mine.”
