Czech energy company CEZ Group on Tuesday said that a proposal for the optimization of its ownership structure and governance was approved by shareholders during the company's general meeting on Monday.
The proposal, first approved by the Board of Directors in April, recommended the transfer of the Group's customer segment to a separate subsidiary controlled by CEZ. It also proposed the sale of minority stakes in that same subsidiary and other customer-segment companies, according to a company statement in April.
CEZ's customer segment primarily deals in distribution of electricity and natural gas, sale of electricity and natural gas to end customers, electricity and natural gas trading, smart energy services and telecommunication services.
The move could potentially pave the way for full government control of the country's main power plants, Reuters said in an article on Monday. The government holds a near 70% stake in the company.
The company's distribution networks and trading and customer sales segments together accounted for about 40% of the group's 137 billion crowns ($6.56 billion) in earnings before interest, taxes, depreciation and amortization in 2025, the report said.
Should the proposals gain shareholder approval, the board will decide on how and when to move its customer business into the subsidiary and whether a transfer of debt should also be part of the transaction, the company said in an April statement.
The transfer is expected to be completed by the end of Q1 2027, according to that same statement.