Czech power company CEZ AS (BAACEZ.PR) is considering selling its 1,200 megawatt lignite-fired power plant in Pocerady, northern Czech Republic, according to a report in Thursday's Mlada Fronta Dnes newspaper.
The proposed sale would be to lignite mining company Mostecka Uhelna AS of the closely-held power holding Czech Coal AS. The sale price reportedly is 28 billion koruna ($1.72 billion).
"Negotiations are really only at the beginning and there's a whole range of possibility," said an unidentified source from within CEZ, according to the report.
The offer from Czech Coal is reportedly a counter to the offer CEZ made last year to buy Czech Coal for CZK28 billion.
Officials at Czech Coal didn't comment on the deal, but have often said in recent past that they aim to move into electricity generation. Currently the group is involved in mining and electricity trading.