Czech Finance Minister Andrej Babiš wants the state-controlled power producer ČEZ to pay all its 2013 profits in dividends. The state has a 70-percent stake in the company and would receive CZK 25bn, up by CZK 10bn compared with 2012. This would be a marked change to ČEZ’s dividend policy, as the company usually keeps between 40 to 45 percent of its annual profit. The step is part of the minister’s efforts to tap all available sources to increase the state budget.
ČEZ spokesman Ladislav Kříž told Hospodářské noviny that shareholders will decide whether to increase dividends, as this would mean it shared CZK 65 per share, rather than just CZK 40. “ČEZ always argued that it needs money to invest, but I do not see any investments that would markedly increase the value of the company,” said Babiš.
