Czech utility ČEZ is selling its 7.5% stake in Hungarian oil company MOL. The group is simultaneously buying out convertible bonds and selling MOL’s stock in blocks. ČEZ cooperates on the transaction with Barclays Bank PLC, Citigroup Global Markets Limited and Deutsche Bank AG, London Branch. The transactions are aimed to avoid the risk of MOL stock price decline, multiplied by the stock’s low liquidity. The held stake equals 80-day trading volume of MOL stock on the bourse. If all bond owners offer all their bonds for buyout, ČEZ Group estimates that the transaction will have a total positive effect on its pretax profit in 2017 of CZK 3.4bn.
Source: www.cianews.cz
