UPDATE 1-Czech Coal extends offer date for CEZ's Pocerady plant

Wed May 17, 2017 10:40am GMT
 

* Czech Coal offering up to 10 billion crowns

* Gives more time for CEZ supervisory to debate

* Czech state majority owner of CEZ

* Finance ministry has raised objections to sale (Changes sourcing, adds details)

PRAGUE, May 17 (Reuters) - Energy group Czech Coal has extended its 10 billion crown ($420 million) offer to buy the Pocerady coal-fired power plant from Czech utility CEZ , it said on Wednesday, giving more time for the deal to overcome state objections.

Majority state-owned CEZ's supervisory board will discuss the sale of the 1,000 MW plant to its rival on Thursday after putting off a decision last month despite Czech Coal setting an end-April deadline for its offer terms.

CEZ is looking to sell Pocerady to reduce its coal-fired generating capacity and to focus on refurbished plants that emit lower emissions. It has an option to sell to Czech Coal in the future but the group, owned by tycoon Pavel Tykac, wants to buy now to begin modernisation work.

CEZ management has backed the deal. The finance ministry, holder of the state's 70 percent stake in CEZ, has objected.

A Czech Coal spokeswoman said the company had extended the offer date at CEZ's request to allow the supervisory board time to discuss it this month. She added the company would not go ahead with a sale if the finance ministry opposed it.   Continued...

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