In June 2026, the ČEZ General Meeting launched the company’s largest ownership transformation since its founding. The government wants to buy out private shareholders, but at what cost?
$CEZ.PR was once a golden dividend machine, regularly paying out tens of billions into the state treasury and into the pockets of small investors. Now ČEZ stands at a crossroads: Andrej Babiš’s government has launched a process that will ultimately transform the energy giant beyond recognition. One part will pass into the hands of the state, while the other will end up in the hands of private investors. And in the meantime, roughly 160,000 small shareholders are waiting to see what the state will offer them.
The Historic Shareholders’ Meeting That Changed the Game
The June 2026 general meeting lasted over ten hours. But when it ended, the decision had been made: shareholders approved, with more than 90 percent of the votes, the spin-off of ČEZ’s non-generation division into a new subsidiary with the working name DSZS. This new entity will include ČEZ Prodej, ČEZ Distribuce, GasNet, ČEZ ESCO, and commercial activities—essentially everything that comes into contact with customers and regulated distribution.
The generation division—power plants, nuclear units, and coal-fired power sources—will remain within the original ČEZ and will be nationalized.
The new company is expected to be formally established within a matter of weeks, with the selected businesses transferring to it by the first quarter of 2027. The state will retain a 51 percent stake in the subsidiary and offer the remaining 49 percent to private investors —through an IPO, institutional funds, or a share swap with ČEZ’s current minority shareholders.
“The book value of ČEZ Distribuce’s assets amounts to 110 billion crowns, GasNet’s to another 11 billion, ČEZ Prodej’s to 9 billion, and ČEZ ESCO’s to 15 billion. However, the total valuation of the subsidiary will depend on market value, not book value.”
Pavel Cyrani, Vice Chairman of the Board of Directors of ČEZ
The key question: How much will the state pay for it?
This is the crux of the whole story. Nationalizing ČEZ’s generation division will not come cheap—the state holds approximately 70 percent of the shares through the Ministry of Finance, while the rest belong to private shareholders. In order to squeeze out minority shareholders under the Business Corporations Act, it must exceed the 90 percent threshold.
This means buying up roughly 20 percent of the shares voluntarily—and forcing at least some of the remaining shareholders to sell at a so-called fair price.
At the current market price of around 1,200 crowns per share, ČEZ’s market capitalization stands at approximately 660 billion crowns. The state would pay around 190 billion for the 30 percent stake held by private shareholders. However, analysts point out that this won’t be possible without a premium— key players such as Pavel Tykač and investor Michal Šnobr, who together with their groups hold over 10 percent of the shares, have a strong negotiating position. Without their consent, the state will not be able to acquire a 90 percent stake.
A comparison with France suggests what to expect: during the nationalization of EDF in 2023, the French government offered a premium of roughly 50 percent above the market price. Applied to ČEZ, this would mean a buyout price of around 1,800 crowns per share.
Why the Dividend Is Falling—and What It Signals
At the same annual general meeting, shareholders approved a dividend of 42 korunas per share—five korunas less than last year, and significantly less than the record 145 korunas in 2022. In total, the company will distribute roughly 22.6 billion crowns, of which the state, as the majority shareholder, will receive about 16 billion.
The declining dividend is no coincidence. ČEZ announced an investment program totaling 400 billion crowns for the years 2026 through 2030. The funds are earmarked for new energy sources, grid modernization, gas-fired power plants, and preparations for nuclear power plant construction. The more the company invests, the less it can pay out to shareholders.
At the current share price, the dividend yield is around 3.3 percent—not exactly a dazzling figure for investors who have traditionally viewed ČEZ as a reliable dividend stock.
“The market had already priced in a dividend of 42 crowns, so its approval did not trigger any movement in the stock price. Given the current market price, the dividend yield is about 3.3 percent, which is not particularly impressive.”
Tomáš Pfeiler, portfolio manager at Cyrrus
What Happens to the Money—and Who Bears the Costs
According to Deputy Prime Minister Karel Havlíček, the buyout of private shareholders should be financed from ČEZ’s own resources, not from the state budget. Part of the funding is to come from the sale of a 49 percent stake in the new subsidiary DSZS.
It’s an elegant arrangement on paper: the company will finance its own nationalization. But analysts are skeptical. The cost of buying out minority shareholders is estimated at a quarter of a trillion crowns, taking into account the necessary premium. At the same time, ČEZ faces massive investment demands. Managing both at once will be a key test for management.
The entire process is expected to take one and a half to two years. Havlíček has promised that the government will complete it by the end of its term.
What does all this mean for ČEZ shareholders?
The situation is unusual. ČEZ remains the most liquid stock on the Prague Stock Exchange and the backbone of the PX index. At the same time, the moment is approaching when the generation division will likely disappear from the stock exchange entirely —institutional investors, who by law can hold only publicly traded shares, will have to sell.
Retail shareholders—numbering around 160,000—face a simple question: sell now, or wait for the government’s buyout offer in the hope of a premium? The answer depends on the price the government ultimately offers. And no one knows that yet—Havlíček is deliberately keeping it under wraps so as not to influence the market.
ČEZ, as the Czech public has known it for the past 30 years, will cease to exist. Whether this will be good or bad news for those who hold the company in their portfolios will depend on the offer the government ultimately makes.