Premier: Valuation Report on JESS Share Price to Undergo Independent Review
Bratislava, 24 August (TASR) - Another internationally renowned consultancy firm is set to carry out a review of the expert report by EY, which valued Czech company CEZ's stake in the Slovak Nuclear Energy Company (JESS) at €189 million, Prime Minister Robert Fico (Smer-SD) posted on social media following a meeting at the Government Office on Monday.
According to him, the proposal for this course of action was submitted by him, and representatives of JESS's shareholders agreed with it.
The premier further stated that the shareholders of JESS - namely the state-owned Nuclear and Decommissioning Company (JAVYS) and CEZ - are to agree on selecting a consultancy firm to carry out the review assessment.
The prime minister also informed the shareholders that the government will take all necessary decisions to ensure that the project for a new nuclear power plant is transferred from the Economy Ministry to the full control of the Government Office and the relevant government proxy.
"The meeting focused in particular on the government's objective: for the Slovak Republic to acquire 100-percent ownership of JESS. This is a fundamental prerequisite for constructing a new nuclear power plant under Slovakia's full state ownership," said the premier.
In this context, the participants took note of the independent expert report drawn up by EY, as well as the valuation of the 49-percent stake in JESS prepared by the STU expert institute in Bratislava. At the same time, they rejected allegations that there is something amiss with the sale of CEZ's stake in JESS. According to them, the aim of these allegations is to thwart the implementation of a project that is crucial for the energy security of Slovakia and the Central European region.
The Economy Ministry had previously sought to arrange an independent assessment of the planned acquisition of CEZ shares, but the JESS board of directors didn't approve the release of the data required to carry out the assessment. The ministry announced this in July after the second deadline for settling Slovakia's ownership stakes in JESS had expired.
Last week, the Economy Ministry stated that the process of settling ownership rights in JESS hadn't yet been concluded, primarily due to differing views on the price that Slovakia should pay to CEZ. The valuation of the stake by audit firm EY at €189 million - which is reportedly €90 million higher than its book value - has also been criticised by several opposition politicians.
JESS is a joint venture between the state-owned JAVYS, which holds a 51 percent stake, and CEZ, which owns 49 percent of the company's shares. The state wants to buy out the Czech company's shares in order to gain full control over the new nuclear power plant project in Jaslovske Bohunice (Trnava region).
