UPDATE 1-CEZ says begins planned buyback of own shares

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Czech power producer CEZ said on Wednesday it had bought 223,541 of its own shares through transactions on the Prague and Warsaw bourses, kicking off a buyback of up to 10 percent of the firm.

CEZ said in a filing through the Prague Stock Exchange that the average price of the buyback was 1,002.64 crowns ($48.52), and that the transaction was dated April 30. The total amount of shares is around 0.04 percent of the firm.

CEZ shares traded at 1,028 crowns at 0741 GMT on Wednesday.

CEZ shareholders approved a buyback of up to 10 percent of the firm at a general meeting last week as a way to improve capital structure. CEZ can buy the shares in a wide range of 300-2,000 crowns for the next 18 months.

The buyback will coincide with a government plan to sell a 7 percent stake in the firm on the capital market.

CEZ has selected leading Czech brokers Patria Finance and Wood & Company to run the buyback.

The business daily Hospodarske Noviny reported on Wednesday that the finance ministry has chosen Ceska Sporitelna bank as the broker for selling the state stake on markets. The ministry refused to comment on the report.

[PRAGUE/Reuters/Finance.cz]