FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934
For the month of January 2006
Commission File Number 333-7182-01
CEZ, a. s.
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(Translation of registrant's name into English)
c/o Duhova 2/1444
140 53 Prague 4
Czech Republic
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(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports
under cover Form 20-F or Form 40-F.
Form 20-F [X] Form 40-F [ ]
Indicate by check mark if the registrant is submitting the Form 6-K in paper as
permitted by Regulation S-T Rule 101(b)(1): ____
Indicate by check mark if the registrant is submitting the Form 6-K in paper as
permitted by Regulation S-T Rule 101(b)(7): ____
Indicate by check mark whether by furnishing the information contained in this
Form, the registrant is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes [ ] No [X]
If "Yes" is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b): 82- ________
The following information was filed by CEZ, a. s. in Czech language with the
Prague Stock Exchange as required by its rules and regulations:
CEZ Signs Contract for Majority Ownership Interest in
Polish Power Companies, Elcho and Skawina
Today, CEZ and representatives of US-based PSEG Global signed an agreement on
the purchase of majority ownership interests in the Polish companies,
Elektrownia Skawina S.A. and Elektrocieplownia Elcho Sp. z o. o., which operate
power plants. CEZ has thus affirmed its success in both tender procedures for
the sale of the firms, out-competing 11 global energy corporations.
"This initial success in Poland in two acquisitions at the same time is very
pleasing and sends a clear signal that we have an exceptional interest in
operating in the Polish market. In the wake of our successes in the Balkans, we
have thus achieved our vision to become the market leader for electricity in
Central and South-Eastern Europe, also with respect to the CEE region. It is all
the more pleasant that we succeeded in winning both tenders, the tender for the
power company, Elcho, and the tender for a share in the Skawina power plant,"
said Martin Roman, chairman of the board and CEO of CEZ, on occasion of the
signing of the contract.
"The sale of these stakes is part of a plan which we publicly announced and are
continuing to implement: to sell off our foreign interests in tender procedures
where attractive opportunities arise," said Robert Dougherty, president of PSEG
Energy Holdings, the parent company of PSEG Global.
"Both power plants are located in an area of Poland that is enjoying highly
dynamic development, which is good news both with regard to electricity supplies
and, in particular, with regard to heat supplies. Moreover, both plants are not
far from "our" Detmarovice facility (50 and 100 km, respectively), which is an
advantage for future synergies. We will be able to carry out a number of
activities jointly for all three power plants, which is going to cut costs.
Another option is the joint purchase of fuel for all three of them. The joint
output of both [Polish] plants is higher than that of our large plants, such as
Detmarovice or Chvaletice," added Jiri Borovec, vice chairman of the board and
CPO at CEZ.
The transaction will be settled within the next few months; the parties agreed
not to disclose the purchase price for the companies at this point in time.
Both Skawina and Elcho are situated in the south of Poland and produce
co-generated electricity and heat. Via the purchase of PSEG Distribution BV and
PSEG Silesia BV, CEZ acquired from the American PSEG group a share of approx. 75
% in the Skawina power plant and approx. 89% in the company, Elcho.
The installed capacity of the Skawina hard coal plant is 590 MW per annum; it
produces about 2.8 TWh of electricity per year. Using co-generation technology,
this power plant supplies the town of Skawina and the Western boroughs of Krakow
with heat and hot water. Its electricity output is sold to a number of local
distribution and trade companies in Poland.
Elcho lies 8 km to the northwest of Katowice and produces electricity and heat
in cogeneration, achieving a total installed capacity of 220 MW in two modern
blocks. 100% of the electricity produced here is bought by the Polish
transmission system operator, PSE, whereas the heat is supplied to Katowice and
its surroundings.
CEZ thus continues its expansion abroad, having already acquired majority shares
in three Bulgarian distribution companies and one Romanian distribution company,
and further participating in yet more tenders in the target areas of
Southeastern and Central Europe. Among three competitors, CEZ was selected in
the privatization tender for the Macedonian ESM; in Poland, the company was
re-affirmed in the privatization tender for the Polish hard coal plant in
Kozienice in mid-December.
PSEG (listed on the N.Y. stock exchange as NYSE: PEG) is a U.S.-American energy
corporation. Among its core members are PSEG Holding, which is mainly concerned
with investments into the distribution of power and gas and the production of
electricity, both in the U.S. and worldwide; PSEG Power, which owns and operates
more than 16,000 MW installed capacity in the U.S.; and PSE&G - a power and gas
supplier in New Jersey, USA.
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
CEZ, a. s.
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(Registrant)
Date: January 31, 2006
By: /s/ Libuse Latalova
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Libuse Latalova
Head of Finance Administration