EPH plans to sell minority stake in infrastructure unit via IPO

Czech energy firm Energetický a prumyslový holding (EPH) is planning for an initial public offering (IPO) at the Prime Market of the Prague Stock Exchange to sell minority stake in its infrastructure business EP Infrastructure (EPIF).

EPH is expected to sell at least a 15% stake in EPIF through IPO, Reuters reported.

EPIF operates through gas transmission, gas and power distribution, heat infra and gas storage segments in the Slovak Republic and the Czech Republic.

Subject to certain market conditions, the IPO is expected to be completed in second quarter this year.

EPH plans to use the net proceeds from the offering to buy back its own shares held by Biques Limited, a passive financial investor in EPH.

EPIF owns a 49% stake in Slovak gas pipeline operator Eustream, Reuters reported.

Eustream acts as the sole gas transmission system operator in the Slovak Republic. Its pipeline is part of the Central Corridor, which is one of the largest and most important piped gas import routes into Europe.

EPIF supervisory board chairman Daniel Kretínský said: "In EPIF we have created a leader in energy infrastructure in Central Europe, bringing together some of the strongest EPH assets in one integrated Group.

"With its key role in gas transport for European markets and its market-leading positions in the energy sectors of the Slovak Republic and Czech Republic, EPIF’s aim is to generate strong and stable revenues in the coming years.

"As a founder of EPIF, my intention is to ensure attractive and sustainable dividend payments for all our shareholders, based on our high-quality assets and the growing economies in the region "

EPH will continue to remain a long-term investor in EPIF and intends to retain majority ownership of its infrastructure business.