The CEZ Group has made public its acquisition of a 55.21% stake in GasNet, the leading operator of gas distribution infrastructure in the Czech Republic. In the envisioned future of the Czech economy, natural gas and eventually hydrogen are anticipated to play pivotal roles. Through this strategic move, the CEZ Group is positioning itself at the forefront of the transformation in the Czech heat generation sector, steering away from coal-powered energy towards reliance on natural gas and, eventually, hydrogen.

The ownership stake in question is currently under the management of Macquarie Asset Management, acting on behalf of managed funds. However, the finalization of the transaction is contingent upon approvals from the European Commission and the Czech Ministry of Industry and Trade.

Daniel Beneš, Chairman of the Management Board and CEO of CEZ, articulated the significance of this acquisition in the broader context of the company's Clean Energy for Tomorrow strategy. He emphasized CEZ's commitment to renewable resources and nuclear power in power generation, and the transition towards biomass and natural gas in heat and power generation, marking natural gas as a transitional fuel in the energy transformation journey. This acquisition aligns with CEZ's broader strategy, complementing its existing capacities in liquified gas terminals in Germany and the Netherlands. Beneš underscored the importance of acquiring assets critical for the transition of the Czech heat and power generation sector towards hydrogen, while also enhancing the proportion of regulated business within CEZ's portfolio, ultimately benefiting its shareholders.

With the majority stake acquisition in GasNet, CEZ also fulfills a key aspect of its business plan in the gas distribution domain, as outlined in the company's approved CEZ Business Concept.

The agreed purchase price stands at EUR 846.5 million, corresponding to the equity value of the 55.21% stake being acquired. This amount will be financed through a bridge loan underwritten by a syndicate of commercial banks, with subsequent refinancing facilitated via the bond market.

GasNet Group manages an extensive network of 65,000 km of gas pipelines and holds a significant share, approximately 80%, in the distribution of natural gas across the Czech Republic. Serving around 2.3 million points of consumption, GasNet distributes approximately 66 TWh of gas annually.

Again, the completion of this transaction remains contingent upon approval from the European Commission and the Czech Ministry of Industry and Trade.

Pavel Cyrani, Vice Chairman of the Management Board of CEZ, emphasized the pivotal role of natural gas distributed by GasNet in ensuring energy security, especially in the impending phase-out of coal in power and heat generation. Looking ahead, the GasNet network is expected to continue its significance by facilitating the transportation of hydrogen or other green gases. Cyrani highlighted CEZ's aim to leverage its extensive experience in power distribution to achieve synergies in operating both gas and electricity networks, particularly in territories where they significantly overlap.