PRAGUE (Dow Jones)--Czech state-owned power utility CEZ (BAACEZ.PR) seeks to buy the largest Czech lignite coal mine for 28 billion koruna ($1.6 billion), the Mlada Fronta Dnes newspaper reported Wednesday, citing undisclosed sources.
CEZ, a major electricity producer in the region, is only interested in taking over all 100% of closely-held Mostecka Uhelna AS, or MUS, "or nothing," the newspaper said, citing one of its sources participating on the talks.
Czech Coal BV, a privately-held resources company controlled by four Czech investors, owns 51% of MUS. All four owners of Czech Coal are currently willing to sell their stake in MUS, the newspaper said.
The remaining 49% of MUS is owned by Indoverse Czech Coal Investments, a Cyprus-registered investment vehicle controlled by Czech business tycoon Pavel Tykac, who bought his stake in MUS two years ago. It isn't clear whether Tykac is willing to sell his stake in MUS or not, the newspaper said.