Investor Presentaiton
EXERCISE OF THE OPTIONS BASED ON THE NEGOTIATED
CONTRACT WAS CONSIDERED, THE NEXT MILESTONE IS
ON JANUARY 1, 2020
E
ČEZ had a chance to exercise the 1st Put option in 2016. After valuation and
consideration of the circumstances, ČEZ decided to withdraw from the contract for
sale of the Počerady plant in 2016. The reason for not exercising the option 1 were
the expected benefits of further EPC operations, which according to the market
predictions exceeded the potential one-off sale price at that point.
Already in 2017, Vršanská uhelná contacted ČEZ to discuss the possibility of selling
EPC to manage the technical condition of the plant on its own. At the end of 2016,
ČEZ started negotiations to verify the profitability of the earlier sale of Počerady. In
April 2017, ČEZ negotiated with VUAS an alternative option that brought additional
economic value. The sale was not approved by the ČEZ Supervisory Board.
2020: 2nd Put Option and an opportunity for ČEZ to withdraw from sale of EPC
(until 31/12/2019). If ČEZ does not withdraw, the sale of EPC becomes effective as of
2/1/2024. The sale would also terminate the contract for 5 million tons/year.
18 Note.: VUAS - Vršanská uhelná, a.s.
CEZ GROUPView entire presentation