UPDATE 2-Czech CEZ AGM approves 10 pct share buyback

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PRAGUE, April 23 (Reuters) - Shareholders of CEZ , central Europe's largest power firm, approved a plan to buy back 10 percent of the firm's shares on Monday to cut capital and meet option scheme requirements.

The plan allows CEZ to buy back 59.22 million shares in a range of 300 crowns to 2,000 crowns per share within the next 18 months and was widely expected to be approved as the state holds 67.6 percent in the firm.

The proposal is in line with market expectations and comes on the heels of a government move to sell around 7 percent in CEZ -- the state currently holds 67.6 percent -- to raise funds to fill a hole in the budget.

"Favourable conditions for such a step (a share buyback) have been created by the recent decision of the Czech government to sell up to 7 percent of state shares in CEZ," the proposal for the AGM said.

"However, the company wants to carry out the buyback itself in a wholly transparent and nondiscriminatory manner by buying stock on regulated markets," it added.

CEZ Chief Financial Officer Petr Voboril told Reuters during the shareholders meeting that the firm does not plan to borrow to cover the cost of the buyback as it has enough cash on hand.

He added that any potential borrowing for the firm in general would depend on any acquisitions it made.

The shareholders meeting also approved a 20 crown per share gross dividend, up from a 15 crown per share payout the previous year.

CEZ shares traded at 994 crowns at 1207 GMT, up 0.71 percent. The Prague bourse's broader PX index was up 0.17 percent.