CEZ Walks Away From Talks With VSE To Buy 8 Oblenergos

Tomas Huener, the Czech Republic’s Industrial Minster said yesterday that CEZ, the country’s largest energy company, had ended talks with VSE for the purchase of up to eight oblenergos. Expansion into Ukraine is part of CEZ’s USD 8.8 bln development plan for Eastern Europe. In related, news CEZ announced yesterday that it had created a daughter company to supply energy in Ukraine. Alexander Paraschiy: This new company, CEZ Ukraina, may be allowed to supply power to industrial consumers. We believe this company was created to develop CEZ’s knowledge of the Ukrainian market and will help it in its efforts to purchase Oblenergos when they come up for privatization.