UPDATE 1-CEZ says to seek approval for 10 pct buy-back

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PRAGUE, March 20 (Reuters) - Czech electricity generator CEZ will ask shareholders to approve an up to 10 percent share buy-back, Chief Executive Martin Roman said on Tuesday.

"We will ask our shareholders to allow us to gradually buy shares from the market," Roman said in a live interview on Radio Impuls, adding the company would ask shareholders to allow the maximum 10 percent limit.

"We will decide according to the situation on the market," he said when asked if the full 10 percent limit would be used, adding the company had enough money to buy the stock.

CEZ, central Europe's biggest power company with a market capitalisation of $25 billion, has been mulling a buy-back to put to use its extra cash, but had not said how much it was willing to buy.

CEZ shareholders meet on April 23 on the plan, which is due to be conducted simultaneously with the sale of a seven percent state stake in CEZ approved by the government on Monday.

The government holds 67.6 percent in CEZ. The sale of seven percent on the capital market and the buy-back would keep the state share in the firm above two-thirds.

A CEZ spokesman said on Monday the company was eyeing a buy-back of a roughly similar amount to the stake the state will offer.

CEZ shares closed 2.1 percent higher at 892.3 crowns on Tuesday, ahead of the news.

The government has refused to say how it would vote on the buy-back plan.