CEZ received a notice of the issuance of orders by a Luxembourg court bailiff concerning CEZ’s equity interests in Czech Gas Networks and Czech Gas Networks Investments

CEZ received a notice from a Luxembourg court bailiff that two attachment orders had been issued concerning Czech Gas Networks S.à r.l. (“CGN”), in which CEZ holds a 55.21% equity stake, and Czech Gas Networks Investments S.à r.l. (“CGNI”), which is wholly owned by CGN. CGNI is the sole shareholder of Czech Grid Holding, a.s., which in turn owns GasNet, s.r.o., and GasNet Služby, s.r.o.

According to the notice, the orders were issued following procedural steps taken before the Luxembourg authorities by DIAG HUMAN SE in connection with its alleged claims against the Czech Republic in the amount of approximately CZK 17 billion relating to the arbitral award against the Czech Republic from 2008. According to the notice, the orders restrict CGN and CGNI from dealing with assets belonging to the Czech Republic and CEZ which are held by them.

CEZ considers both orders unlawful and an abusive exercise of rights against CEZ. DIAG HUMAN SE has no, and has never had any, legal claim against CEZ or any other member of the CEZ Group, nor any other legal basis on which it could seek any performance from, or take legal action against, those companies. Any claims alleged by DIAG HUMAN SE, if they existed, could be directed solely against the Czech Republic and not against CEZ, which is not mentioned anywhere in the arbitral award, was not a party to the arbitration proceedings and had nothing to do with them.

CEZ will use all available legal remedies to protect its rights and legitimate interests. CEZ is convinced that the orders are unlawful and expects them to be set aside by the courts; the relevant actions will be filed in the coming days. Based on its legal analyses, CEZ currently expects the orders to be set aside within a matter of months.